“What happened each time the Fed stopped QE? Yields fell. The complete opposite of what Jamie would predict.”
Author: Kevin Muir
Trader: Probably Not Best To Unwind 30 Years Of Chinese Trade Policy With 1 Month Of Tweets
“So, if we assume that Trump wants to reverse this process, then what’s the logical outcome?”
Trader: This ‘Out-Of-The-Blue Outcome Could Hurt Some Market Players’
“While there can be no denying that stock markets often take the escalator up and the elevator down, this generalization is far from a law of nature.”
Here Is One Trader’s ‘Philosophical Friday’ Debt Rant
“Now you might look at these charts and say, ‘Greece spent too much and suffered the consequences. Ultimately they will be better off taking the hit and reorganizing in a more productive economic fashion.’ If so, you probably also still have this poster hanging in your room at your parent’s house where you grew up.”
Trader Asks: ‘Which Would You Rather Own’?
“Draghi’s monetary subsidy of cheap funding for corporations should not be leaking into this number. Yet it obviously is…”
Mind The Scale, Chicken Little
“I simply want to point out that neither one of these graphs are anywhere near as bearish as the Chicken Littles claim.”
Trader: ‘I Know This Seems Crazy, But’…
“They’re back. I thought they had all given up, but like an old college buddy who’s going through a bad divorce and just needs a place to crash for a ‘few days,’ the corporate credit skeptics are a tough lot to shake.”
Trader: ‘The Next Big Surprise Is Gold’
“The only scenario that really hurts gold is a strengthening economy that has the Fed continuing to try to get ahead of the curve. I don’t know about you, but I am a seller of both of those possibilities.”
Trader: ‘That’s Not A Bond Bear Market’…
“And you would think that this might be bullish for bonds, but no, far from it. A Central Bank that is not willing to invert the curve and take the economic hit from forcing a recession is a bond investor’s nightmare. After all, apart from default, inflation is the absolute worse thing out there.”
Trader: ‘There Is One Asset That’s As Cheap As It’s Ever Been’
“Cries of that awful acronym TINA ring through the halls of investment houses as clients take a big gulp and write blue tickets – despite the lofty prices. After all, everything is dear and their retirement still needs to funded.”
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