The China trade FUD was released earlier today to trick you into selling, knowing this news was just around the bend. They did it on purpose to separate you from your money.
The Fed has genuflected to the market. Here are the headlines.
The Fed indicates that no more rate hikes will be coming this year.
The announcement comes three months after the central bank said two hikes would be appropriate in 2019.
The central bank also says it will complete its balance sheet roll-off program at the end of the September.
The Fed also reduced expectations in GDP growth and inflation and a bump higher in the unemployment rate outlook.
As expected, the benchmark funds rate is kept in a range of 2.25 percent to 2.5 percent.
No more hikes in 2019, all the while wage growth and employment are surging to record levels can only mean one thing: inflation. Whether it’s reported in the CPI or not is moot.
Look at the dollar, down sharply by 0.8% vs the Euro.
Look at the 10yr bond, down 8bps to 2.53%.
These are incredible moves.
As such, I added to my NUGT position, making it a maximum weighted holding — 15% of assets. I also bought AU and AYX. Oil is bidding here too. Get out there and buy some stocks.
POMP EEET.
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FAANG is leading in a big way today.
Not quite sure what to make of that.
Also, while you may be expecting inflation, the FED is expecting recession:
lower GDP
lower inflation
higher unemployment
2 hikes -> 0 hikes
no more roll-off