In her testimony today, she still thinks inflation is going to 2%. She was surprised by the drop in oil and rise in the dollar. And, she believes the economy is strong.
Most importantly, she explicitly stated that the Fed would keep an eye on things, but didn’t want to rule out more rate hikes. She said they’d discuss it during the March meeting.
Investors didn’t want to hear more bullshit.
Gold is higher by 4.5%. Crude is plummeting through the fucking floor boards. Stocks are off by 300. And the ark is crowded with all sorts of animals and humans; TLT is up more than $2.
Look at some of these gold winners in Exodus today.
Well, nice knowing everyone.
The feeling is mutual
Buying with both hands at 1800 as well as 1900?
As much as I want to blame one person … Yellen (she’s no Ben). Let’s be honest, the people she has to work with … Congress … isn’t helping. They are classic Scoots McGoots. Collect the check, make some deals, leave by 1pm. Must be nice.
All true
Everyone hates Congress. But who elected them? It wasn’t space aliens from other planets.
In other countries, people actively start different parties and give them a lot of support and get some of the 3rd or 4th party candidates elected whom the people like. Here, we re-elect incumbent Congress members about 90% of the time. At least those few of us who can be bothered to vote do. And then we complain about how awful they are.
“In other countries…” What a laugh. Like those other countries are doing any better.
Well, at least they are trying. Here we all sit and complain about matters we are doing nothing about. But, hey, maybe that’s the winning strategy, huh?
Well to be fair.. if you voted, you do get to complain.
Is it time to form up militia’s?
No.. It is not time to form up militias. It’s time to stock up on good quality Wild Turkey 101 to make a Perfect Manhattan. Then get your free Age of Conan on and do some serious questing! Level up! And hit the gym 3x a week and eat your veggies. That’s what it’s time for.
Mmmmmm. Yes. Conan what is best in life?!
https://www.youtube.com/watch?v=Oo9buo9Mtos
election year leaves no one to answer to. fear not as this will end well.
Next prez in gets the favorable start of a bad economy.
Only way is up
The Jake Gint portfolio is back en vogue
I hope the Senator is doing well. Miss that guy.
The ark is floating and sailing.
I think you are right fly. The Fed is signaling to people to sell stocks.
The fed’s position is that currency domination and government bonds should be preserved at all costs. Even if it is a detriment to equities and the markets decrease.
Makes sense because the rest of the world has too much debt.
And by preserving currency domination and US government bond domination we keep and strengthen both economic and political power all over the world.
The market certainly does feel strange with TLT as high as it is. But whatever.
Just my 2 cents.
Guys.
that does not make sense
Contagion is in play
this isnt just “selling” “stocks”
You’ve been had
Peeking my head out the 2×2 opening of my Cashin suite here on the Ark, I have a great view of all the royalty that is boarding this fine vessel. The upper crust of society has ventured on with the pigs, literally. It is a sight to behold.
As I called to my bellhop, a one Dave DeWalt, my wandering eye sees Charles Gasparino trying to talk his way on. Put him on the vagabond deck, I call out, and he looks in my general direction with that one wandering eye. I raise my glass to him and he looks completely and utterly confused as a chap who looks a ton like Tyler Durden passes him by.
lol. Classic!
this is crazy, up 17.5% MTD as we speak using 2x inverse .. last time this occurred where MTD was 25% was Sep-2011.
I know I will get my head handed to me but I am going to defend Yellen. Has anyone noticed that European banks have been getting killed? That’s what negative rates do. The Fed is not going to let that happen to US banks, whose interests they represent. Also, devaluing your currency only works if not every country is doing it at the same time. It now looks like us and China will be the ones with hard currencies while Europe goes all soft. I know that goes against conventional wisdom and what the hedgies are all saying but this isn’t their year.
I don’t know if I’d go as far as “defending” Yellen, who seems WAY tone deaf at times, but I do think the scenario you describe is pretty close to reality.
Good points, gnat. That may be at least part of what is happening here. Negative rates do indeed seem to be a disaster.
The Fed head does not make decisions alone. If Saint Bernanke were still the Fed head, he would likely be making the same decisions Yellen is making, because that would still be the consensus of the powerful bank heads.
Gnat, I hear you, but — without me having seen what she said today — isn’t she getting the worst of both worlds by (i) holding firm on rate rises (as opposed to rate stability) yet (ii) going out of her way to say that negative rates aren’t off the table?
Seems all that’s doing is leading to a scenario where the market sells off due to rate hike fears — so you lose the wealth effect — and then AFTER shit gets really bad, we might see a rate decrease or rate stability. Why not instead just give some lip service to monitoring the markets, etc., let things stabilize, and then consider rate hikes when things actually get goosed on in the inflation front?
Maybe she is trying to get the best of both worlds – higher interest rates for the banks without the dollar getting too strong. As for the wealth effect that is probably way down the list of objectives.
People are fleeing the ark. Why?
The ark was up two and a half points this morning and is now down 5/32s. What is going on with the ark and is this good for broader risk. Am I just hoping? Maybe I have gone crazy. But the ark is encountering winds.
You SPOOs you lose.
YOU KNOW I TOTALLY LOVE 2016. Yellen is making me LMAO so hard that I may have to cry. Bulls are going to try and defend 1820 but it is just money that will be thrown away.
haha
C is 3.46 split adjusted LOL
OPEC to the rescue!
*OPEC READY TO COOPERATE ON CUT, UAE ENERGY MIN SAYS: WSJ