When You’re In A Hole…
It's all about Jackson Hole in the new week, which, as usual, will feel a bit tedious given that the marquee address, from Jerome Powell, won't come until Friday.
Generally speaking, traders expect Powell to reaffirm the Fed's commitment to the inflation fight, where that means emphasizing the importance of ensuring longer-term expectations stay anchored and, possibly, throwing his weight behind the "higher for longer" policy bent advanced, in one form or another, by most officials during recen
I am actually considering moving my non-taxable accounts to cash.
Ever the optimist, even I am concerned about the lack of potential “good news”.
I was hoping for gridlock in Congress, but it is almost hilarious watching how dysfunctional the Republican party is right now. The chance for “gridlock” after the midterms seems to be diminishing by the day.
On the “plus” side (to staying in the market), is the extraordinary amount of excess (meaning this wealth is not needed to buy groceries) money/wealth out there in the hands of so few that has to go somewhere. High rollers with deep pockets can stay at the tables.
I prefer incremental moves myself. I’ve been raising cash by reducing tech and even utilities (which I’m generally loathe to do) given their recent high flying performance. I’m looking to add to my underweight EDV and TLT (I think you’re not a treasury person…?) and my short SP 500 and Russell hedges, and maybe some more precious metals …going completely to cash in this inflationary environment is safest for sure but I think there’s other diversified places to balance things out…just my 3 cents worth…
H-Man, as i write tonight the 10s are sniffing a 3 handle in Chicago futures – 2.99. If the 10’s move to a 3 handle in the 3.15 to 3.40 range, not good for equities.