The US 10yr is down anther 10bps today to 4.18%, down from 5% just 1 month ago. This move is on par with about 4 rate cuts without the Fed even moving. If you think about it, the Fed has escaped the pangs of deleterious inflation and managed to normalize the yield curve without destroying the economy.
Now they get to cut rates and throw the economy back into hyper drive, if they so choose. I hate to see this current regime strengthen, since it’s inherently evil, but it does appear the economic backdrop is increasing for the better.
I haven’t been so lucky, since I was stuck, catacomb’d even, in a pastiche of piece of shit small capped stocks of ill repute. This positioning sacked me, now off by 1.8% in a tape that is green for large caps. The issue is small caps, which are lower by 1% — but I would not worry too much about it. With yields crushed lower, the market is likely to trend up. My issues in regards to my trading account is a one off event and I will fix it. With my longer term strategic account, it is down just 20bps.
In an attempt to fix my losses, I’ve taken on some 10% positions in a variety of larger capped stocks — hoping the Gods will humour me with an early afternoon rally.
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