Tantrum Ahead of the Fed

Yes, Wall street is behaving like a spoiled brat, ahead of the Fed. I suppose we ought to pack it up until Wednesday and accept any losses from now to then as part of the game.

Oil is hovering at 11 yr lows. Deflation is the fear. So, the Fed is hiking rates?

Yes, you heard that right. The unexplainable is going to happen; but what can we do?

Everyone is transfixed on crude, junk bonds and shares of Apple, diving lower. But what about investment grade credit? Remember, I told you there is upwards of $250 billion in distressed basic resource debt. But behind that in higher quality debt is a much larger amount: $1.8 trillion.

Look now, because the LQD is showing signs of wear.

Plunging commodity prices, galloping higher dollar, horrible retail sales, disadvantage exporters, a blind Fed equals KRAMPUS.