The 10yr is -3bps today, after it was revealed the Fed has zero interest in hiking rates — even if the economy gains steam.
This is particularly good news for old man stocks — companies who rely upon cheap sources of capital to make acquisitions, do share buybacks, and other forms of chicanery.
Markets are barely down. For now, I’m sitting on lots of cash, waiting for the voices in my head to tell me where to go.
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And if we’d get up off our knees
Why then we’d see the forest for the trees
And we’d see the new sun rising
Over the hills on the horizon
There’s gold in them hills
There’s gold in them hills
Whoooo. The voices are telling you to sell your oil short right now. Whoooo. Quit whilst you’re ahead. Whoooo
So TSLA had a bad day today for sure, but it hasn’t yet had a day of true panic selling – would you agree? I think that wave has to come soon. And if there were a few panic selling days in a row would you step in and buy, given the short interest? Or better to just avoid this one altogether? I’ll hang up and listen. Thanks.
“Patient” means that they think any spike in economic indicators will be “transient”.
Also, note the start-off discussion of a MEP (maturity extension program), which ha not been brought up before in a FED meeting to my knowledge. This is a possible recession-fighter move: buying long-term Treasuries. This is obviosuly would be very favorable to long-maturity holders. If the FED favored a MEP, then their advance setup action would be to shift their current portfolio to earlier maturities. This gives investors VERY ACTIONABLE data: if the FED does decide to actively shift their maturites, then fronting the FED and buying short-term Treasuries would be prudent. More importantly, the moment they end this maturity shift, go deep into long term treasuries foreasy money. I will be watching for any FED maturity-roll program like a hawk.