It’s delusional for the Fed to keep hiking as high yield markets get smashed. They have already overshot. Hence, I doubled up on my FAZ position. Anything can happen on Fed day. We can reverse higher and this might turn out to be a mistake. However, I am VERY comfy being short banks and oil here, especially with high yield getting killed.
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Joined Nov 10, 2007
23,452 Blog Posts
The FED has to move slowly to avoid a panic. Therefore the direction of the policy change (less hikes) is more meaningful than the **publicly-state** policy.
They coudl very well beleive that no more hikes will be needed, but despite what the Toddler-in-Chief thinks, announcing no hikes for 2019 would have crashed the market
I’ll confess, Mr. Fly. I didn’t think they would hike with these market conditions. A fitting end to rough trading year. I would love to see stats for investors YTD. I would bet it’s mostly negative.
I think this is now an opportune time to make select investments in some regional banks with asset-sensitive balance sheets.
le fly going le Drunckenmueller on da banks
Pretty obvious now that Jerome Powell is working for the Chinese and the Deep State.