The feverish jerking off ahead of the Federal Reserve speech at Jackson’s Hole has resulted in a market brimming with shit. If I had no brain and simply looked at what the market was saying today, I’d surmise it was pricing in a Fed rate hike.
Look at the 2yr notes, through the roof!
These are the highest rates since May, when the Fed was last menacing markets with the specter of rate hikes.
Along this narrative, gold gave back all of their gains, currently flat. The dollar is surging v the euro, higher by 0.66% and up more than 1.1% v the Yen. A tight Fed is likely to lead to FOREX fuckery, a shortage of dollars throughout EM. I don’t really understand why the Fed keeps insisting on talking about raising rates, especially since all of Europe and all of Japan is under QE programs.
All indices are selling off, now down 80.
Over the past 2 weeks, the NASDAQ is down 1%, but up a whole 4.7% year to date. From my vantage point, this is a whole lot of nothing-burger. The real money continues to be made, without pause, in REITs, Utilities, Gold and Treasuries.
Year to date, gold miners are up 143%, water utilities are up 30%, healthcare REITs are up 26% and TLT is up 18%.
Today, we’re getting a push back against these sectors, however, because of the infantile belief in Federal Reserve rate hikes. The ark will be repurposed as a warship (DDG-Fly Class 12631) in the coming storms.
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Long $GDX.
The Fed is kinda of screwed bc life insurance companies face considerable interest rate risk given their investments in fixed/income and liabilities same for pensions.
Sold my SPY puts. The chop doesn’t end here. I’ll prob be a buyer at 2150.
It’s all bullshit until Obama leaves office.
Or until Assange buries Hillbabe.
Why do we have money to send these fucks on a vacation to Jackson Hole. Who the fuck goes to Jackson Hole out of convenience. Can’t they all convene in the shithole that is washington DC?
Fly,
Is the chat room service 0815456 (or whatever damn number it is) still around and if so is it included in the Exodus subscription?
Yes, it’s included in Exodus for free now.
vxv/vix
Uhh, this current rebalancing is throwing me for a loop. Everything across the board is down, save nat gas and paper?
This is a deflation head-fake, right?
Time to get out of bonds and into commodities, materials, national defense players.
I’m so pissed I was looking at $IP and $WRK in February as potential swings and didn’t take them. But I kept following them and yesterday at the weird time of 2pm massive money comes in. Wtf
I missed the boat on IP, but hold NP and FBR long (got in NP couple months ago and FBR about 2 weeks ago). Word got out that IP will increase prices on some paper, seen as bullish for industry.
“Jackson’s Hole Has Produced Nothing But Shit”
An instant classic. NY Post worthy!
Fly-
The more I look at the macro events of the market(s), the more I think the gold/silver/precious metals have big upside.
Some quality explorers in the sector are still trading at a serious discount to GLD/GDX/GDXJ.
Picked up some more GGIFF at the bottom today. Love their model looking forward.
Not a question in there, is there?
Meant to ask, what do you see within the gold/silver as having the longest runway ahead of it?