August payrolls came in hot at +315k — above expectations of 297k. The last two months were revised down by 100k, but no one gives a shit. The odds of a 75bps hike dipped a little and now we wait for the CPI data next week.
The economy is being artificially taken down and you can see it in this data, an otherwise booming economy if not for all of the inflation racking it with new expenses.
Markets are viewing today’s data as a reason to rally and price in less Fed hikes. You can see it in treasuries, gold, and stocks. The dollar s also down against the euro. At some point when we unwind this inflation business, the dollar will be a terrific short, in addition to heavy longing of gold and bonds.
Stocks are somewhat muted, +50 NASDAQ. I have little exposure and sold my hedge at the open because textbook says we should rally today.
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We should pretty much be using our dollars right now to incrementally buy PMs, Western foreign assets and Western foreign denominated bonds. It’s not the bittom but a 18 month buy program will probably look great in a few years.
Spy just kissed the 50 …no tongue
Just got back from a Target run. I would say they’ve raised prices by roughly 30-40% in the past few months. I’m looking at a small sample but I would bet it’s pretty consistent across the board. The Fed will continue to raise rates because their goal is to destroy the US. Once you accept that, it becomes obvious where this is all going.
Lol they aren’t trying to destroy the US.
The Fed (and every other central bank for that matter) just has an unspoken mandate that trumps every other mandate. Something that is at once obvious and hiding in plain sight.
The debate between inflation and employment is stupid if people stop using dollars for trade. We’re just at the point where the Fed has to prioritize inflation because otherwise people will give up and start transacting eith other things. Crypto. Barter. Sexual favors. Whatever.
And a central bank with a currency no one will use isn’t much of a central bank, now is it?
Not sure. I’m guessing that the same folks who run our federal gov’t run the Fed …if this is the case, why would they have done stuff, stuff like the recent confiscation of dollar assets of foreigners, if they weren’t looking to burn it all down? Yeah, they could be that stupid, but there could be some other agenda that trumps dollar trade and what’s good for the US.
Saving the USD is so yesterday. I think they now know it’s over for the dollar one way or another.
“Price Stability” is the Fed mandate.
Rates up, market and crypto down.
IMO, we get 1 point raise, and it’s warranted.
Bad Gazprom news tanked the market quick
Apparently Vlad was waiting to short the 50 SMA