The Fed just said absolutely nothing, other than acknowledging the economy sucks. Ergo, they will base any rate hikes on the data. We all know the data will blow. As such, dollars down, stocks up.
On this move, I like gold, via GDX. To hedge it, I like utilities, via XLU. In an ideal world, both will go up, as the utes have been beaten to pieces recently.
This is reflation, a do nothing Fed, with a green light to stay long equities.
Party on.
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If I sell the long end of the curve am I going to get raped fly?
get your razor blades, glass tables, and hundy bills….Yellen is bringing the rest.
I pity the foo’ that was using margin in the last hour.
if tomorrow is a down day those 2 ^ have to u know what
Dr Fly, completely agree, I have been thinking lately that the #1 job of the Fed is to prevent deflation. To do that they have to keep their balance sheet LARGE. So no scaling back or rise in interest rates until we get to 2% inflation.
And here’s the conundrum for the Fed.
Raise rates = stronger dollar.
Stronger dollar = deflationary.
Sep at the earliest, but I expect that can (raising rates) to get kicked into 2016.
Dude what bears said 5 years ago
They would trap themselves
Gee guess the fuck what
QE4?
The data that Yellen intends to use is the VIX. She’ll raise rates when VIX hits 0.
any in particular out of utilities for the long haul?