There’s a lot to be said about a man, such as myself, who is malleable to the point of maddening flexibility. One minute I am a gold insect, the next I am this sort of lunatic selling short the metal. I am, after it’s all said and done, a slave to the trends.
We do not have an accommodative tape for gold presently. The metal has shined wonderfully the past year, but is now BOGGED down in a sideways pattern that is bound to shake out weak kneed faggots. As such, you might see a divergence between the metal and the miners, with the latter getting smacked cold, as rates reflate upwards.
There is a good correlation between rates and gold. You might not be paying close attention, but I am.
That being said, and until further instruction: fuck gold.
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When most people say “Fuck XXX”, they are not still long XXX in their long-term fund…
FED minutes at 2pm should reveal this market’s convictions.
Also, for the 1% concerned that recent low inflation has not juiced their portfolios enough, fear not.
Infaltion was Topic 1 in the minutes: Infaltion
“The staff also illustrated the properties of “makeup” strategies using model simulations. Under such strategies, policymakers would promise to ***make up for past inflation shortfalls*** with a sustained accommodative stance of policy that is intended to generate higher future inflation…it was important to be aggressive when confronted with forces holding inflation below objective..”
So instead of a policy “bug”, the FED sees high inflation as a “feature” (for those on wage income, not such great news).
Future QE:
“A number of participants noted that the Committee’s experience with forward guidance and balance sheet policies would likely allow the Committee to deploy these tools ***earlier and more aggressively*** in the event that they were needed…Participants agreed that any Committee decision regarding the trend pace of balance sheet expansion necessary to maintain a level of reserve balances appropriate to facilitate policy implementation should be clearly distinguished from past large-scale asset purchase programs that were aimed at altering the size and composition of the Federal Reserve’s asset holdings in order to provide monetary policy accommodation and ease overall financial conditions.”
Economy:
“the staff still judged that the risks to the forecast for real GDP growth were tilted to the downside…Important factors in that assessment were that international trade tensions and foreign economic developments seemed more likely to move in directions that could have significant negative effects on the U.S. economy…Participants generally viewed the baseline economic outlook as positive…Participants agreed that consumer spending was increasing at a strong pace…participants saw trade tensions and concerns about the global outlook as the main factors weighing on business investment, exports, and manufacturing production…Participants generally judged that downside risks to the outlook for economic activity had increased somewhat since their July meeting..Several participants noted that statistical models designed to gauge the probability of recession..suggested that the likelihood of a recession occurring over the medium term had increased notably in recent months.”
1 vote for 50pt cut: Bullard
7 votes for 25pt cut: Powell, Williams, Bowman, Brainard, Clarida, Evans, Quarles.
2 votes for no cut: George, Rosengren
Only .9% manipulators?
ONLY .9%?
Weak pathetic shoddy.
All you can get?
Dreadful volume. “Sorry”