Former treasury official and current ‘scholar’ at Brookings Institute, Aaron Klein, was on CNBC this morning telling America to get ready for rate hikes ‘all year long.’
He likened the Fed’s pace as a race towards 1.5%. This is unacceptable.
“The Fed is racing to get to 1.5 percent for the interest rate so that they can get above the next recession and get out in front,” Klein said Monday on CNBC’s “Squawk Box.”
“There were false starts year after year after year,” said Klein, an economic studies fellow at Brookings and a former deputy assistant secretary for economic policy at Treasury. “I think people are going to start to get used to regular Fed rate hikes all year, starting now.”
Yellen all but guaranteed a hike this March and I’ve read one article after the next about Trump providing the Fed with the cover they needed, via his bold stimulus programs, to hike rates like crazy fucking madmen.
That’s all well and good, if Trump was being supported on the hill and by America’s insurgent media. But the former AG of the United States, Loretta Lynch, just made a God damned video this morning calling for blood in the street to stop Trump.
CNN is openly spying on the President and airing it like it’s acceptable behavior.
Obama has Valerie Jarret living in his DC compound, which is less than 2 miles away from the White House.
Democrats are going after Sessions.
Democrats are going after Reince.
Democrats are going after everyone and are unhinged.
The republican response to all of this tumult is flaccid indifference and milquetoast support.
As such, I’ve sold out of my portfolio today and went to 100% cash. The last two days have hit by bottom line severely, reducing my gains to just +6% for the year. So instead of fiddling my thumbs and sweating over a hot terminal waiting for my luck to get better, I opted to stop the bleeding and take a fresh look at things.
I’m not getting bearish again. I just needed to clear the decks in order to evaluate the market with an objective mind.
Scandal is on the horizon and this political business might be the market’s undoing. Plus, unfettered Fed hikes will not help.
Tell me why I’m wrong.
Pro tip: you can’t.
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Costanza
Newman!
LOL The market isn’t down because Jarret is living near the Obamas or because CNN showed a highly inappropriate clip. OMG that’s funny.
The market is starting to get a vision of the next four years and it doesn’t like what it sees. Launching of missiles from N Korea and Iran, who smell Trump’s political troubles and his weak, unstable personality are no joke. The administration’s dysfunction will continue to drag the market no matter how much CNBC keeps yammering about tax reform and infrastructure spending. SAD!
That’s funny, the Stock Trader’s Almanac predicted each down day as far back as last June when they went to print. I guess they must be psychic when it comes to current events.
Good call. Your original thesis may play out, but the risk to reward is not nearly as favorable as it was a month or two ago. It is partly the Trump admins fault as well as the recalcitrant establishment order–either way there is a lot of risk to the pro-economjc agenda.
If you ask me, Trump should have made the economy his one and only priority in the first 100 days. Tax reform, trade and infrastructure. Focusing so much on divisive issues like illegal immigrants and the Muslim ban to kickoff his term was foolish. Talk about amateur hour.
So far it appears Trump’s number one priority has been fake news and secondarily an ill advised immigration ban. He is losing all his political capital and momentum over it. He’s currently on controlled flight to ground. I knew his administration would be messy but better this than another Clinton administration.
Haha, market is still close to 21000, yeah the market is reacting horribly so far. I can see now that any normal correction will be blamed on Trump. LOL.
Good call Fly. I have my finger on the trigger at this point. Although my gains YTD were never at your levels (I don’t employ leverage), I sensed weakness mid Feb when Russ seemed to be stalling out. So far, only down 1.50% on the month, but defending the +7.11% YTD.
Do you see PMs moving up on this weakness?
A call for Trump’s assassination a couple of weeks ago with no backlash, Lynch’s call for violence, media hysteria, CNN window frame cross hairs– maybe this environment is not sustainable and the country and markets need an ‘oh shit’ moment to reset.
I love unscriptedness, but the veneer of fake, focus-grouped, civility that the previous administration practiced did tend to keep folks numbly smiling while they were being fucked.
Pretty sure it has more to do with Trump accusing Obama of tapping his phones with no evidence, but OK.
What do you mean with no evidence? Do libtards read? There were two FISA requests against the Trump campaign. The first denied, back in June of 2016. The second, this past October, acceded to. Are you familiar with the term “October Surprise?”
Howabout “Watergate?” Maybe read some history.
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Registered Repub here and therefore not a Libtard. Do you happen to have what you read that proves this? I’m actually getting tired of both sides at this point in time with their “fake news”.
I have a feeling you read too much “fake news”.
KDOG:
“Exclusive, FBI Granted FISA Warrant Covering Trump’s Ties to Russia”
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KDOG and just OG:
That’s from Louise Mensch, who is a TOTAL Hildabeast bot on Twitter (check her out) who HATES Trump, so there is no reason to question her sympathies on this case.
The hilarity is, she thought she was screwing Trump by making this reporting, and she’s only digging a deep grave for her master, Barack Hussein.
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I agree, Trump’s accusation has stirred things up quite a bit. We know Obama’s administration sought to spy on a presidential candidate …even the NYTimes said so. Worthy of investigation, don’t you agree?
Of course. Let’s see how far this rabbit hole goes, but I doubt the GOP will want to see where it leads.
Bernie is all over Trump it’s hilarious. The Beacon of truth in a world of lies.
https://www.facebook.com/senatorsanders/?hc_ref=NEWSFEED
That’s funny. A communist as a beacon of truth.
say it again, and say it loud
if you don’t have property? you don’t have a language, whether it be numbers or words . . .
ETF coming soon
natty gas….. its just time…..
Trump has been successful, with the help of neconlibtardia in building a big, beautiful wall …of worry. Inflation will ultimately rally the climbers.
I went to cash last week. Then like a fucking idiot, I went long JNUG after that big sell off last week. Obviously it didn’t turn out well. I got lit up and sold that piece of shit today. So pissed I traded that shit bag stock.
Probably stay on the sidelines til the fed raises and things settle out.
Stop wiggling so much, just buy SPY and sit on it for 20 years. You guys are all shooting yourselves in the foot trading.
Yes, Benny, my 53% gains in PJT in the last six months, MRO two-bagger in 2016 (realized), enormous crude futures gains and my gains in AAPL since 2004 have been horrible. Do a little work instead of relying on your passive IRA and who knows, you can be a Big Winner, too. GL!
Whether you are right or wrong doesn’t matter to me – I’m going to keep plodding along, buying the dip when Exodus throws off oversold signals. My favorites have been $SPY, $IWM and $TLT.
I hope we do get a nice sell off because I have a lot of long term cash I need to get back into the market.
+1
You’re a bear Fly. Thru and thru. Come back to the dark side.
“I see a bad moon a-rising”
is it March madness or beware the ides of March or both?
Market is down a whopping 1% off all time highs, time to freak the eff out. Also about that time where you blame democrats for your portfolio’s performance and make calls for political pandemonium to justify your sales.
People like this clown are the ones thrown from the boat when the tsunami hits. I’ve seen it before, I will see it again. Now 58% cash here, that number will increase as 2017 moves along. Stop Limit orders preset on everything. Man the torpedoes.