Chop, Chop, Chop: Market Insanity Continues

It isn’t you getting the market wrong, but the market itself that is broken. I struggled with this new paradigm for more than 2 years, always second guessing my actions in the face of market moves that defied logic.

So here we are, post minutes, and markets are reeling on news the Fed is really serious about hiking rates. Well, duh. What did you think all of those fancy speeches were about?

Investors have their heads in the sand, or worse. The nanny state, created by the Fed and the plurality of policies that caused people to become reliant upon artificial forces, are to blame for this market being so nefariously wretched in its manner and mechanism.

“Most participants judged that if incoming data were consistent with economic growth picking up in the second quarter, labor markets continued to strengthen, and inflation making progress toward the committee’s 2 percent objective, then it likely would be appropriate for the committee to increase the target range for the federal funds rate in June,” according to the minutes.

Some policymakers were wary about a slowdown in U.S. economic growth during the first quarter, when gross domestic product expanded at a two-year low of 0.5 percent. But others argued that ongoing robust job growth suggested the economy was still on track and the growth data could be flawed.
“Most pointed to the steady improvement in the labor market as an indicator that the underlying pace of economic activity had likely not deteriorated,” according to the minutes.

Markets were up nearly 100, then down 100, now off by 50. Wherever it ends up, the outcome is the same. Markets are inexorably broken, a byproduct of a system enjoying the last throws of its monstrous success, teetering and flailing from the thousands of microscopic cracks in its structure that are starting to wear it down.

I’ll sit here waiting for the next Exodus oversold signal, patiently.