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‘Feel The Market’ Next Time, Jay
Jerome Powell's webinar with The Wall Street Journal didn't go well.
Or at least not if you define
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Even before reading anything about Powell’s remarks, I knew the gist from the early afternoon market reaction.
One would have thought that by now Powell would have developed a better sense for calming markets. His continuing lack of subtlety is in a position where nuance is frequently important is something of a concern.
It is hard for me to see this as anything other than an opportunity for anyone who wants to move some of their retirement account from bonds to equities.
The answer to the question relating to monetary policy and the causes of inequality made even me cringe.
If I’m the Fed chair and I’m seeing the bubble stocks implode but indices cushioned considerably by resurgent cyclicals I’m feeling pretty good….. nervous of course, but aware that there are far worse alternatives (TAFWA).
How far does the S&P 500 need to drop until the central bank thinks financial conditions are tightening? I’d say it’s another 20% lower.