Market Responds Dovishly to Fed Tightening

The market never ceases to amaze. In light of the Fed hiking for the third time in the past 11 years, hinting at two more hikes for 2017, the sages of Wall Street are responding dovishley, with boyish naivety, as if they just lowered rates.

At the very core of Fed hikes is the notion that it will prevent an overheating of the economy — bolster the dollar — and provide banks with a steep yield curve. It is, inherently, anti-growth.

But the market is viewing it as anything but that — more of an affirmation that things are getting better.

The Dow is higher by 100
The dollar is DOWN 0.73% v the euro
Copper +1.4%, WTI +2.7%

And, interestingly, bonds are rallying too.

Victoriously, I anticipated these shenanigans and allocated 100% of my assets, which were hitherto in cash, in a singular stock of glorious proportions.

Let the rally commence and gains to be enjoyed.