A picture is worth 1000 words. Horrific dependency on FED Prop. Nullified
Duress is everywhere. There is no escape, while the demand for Collateral increases the Rate of Demanded Collateral continues to Rise in Yield. Interesting Times indeed. For those trading "Conventional Paradigms" ... Please check your Six. The Federal Reserve is Supplying said Collateral from its ever-expanding Balance Sheet. At a large profit no less. We...
Non-Financial rated Debt, Corporate Debt will begin to roll over as GDP Forecasts, although no longer provided... does not matter, the Global Economy is once again on the Steep Decline. Supply Chain Issues compound monthly, with no end in sight. The answer is, Buy STONKS, they are the New, New, New, and Improved Liquidity Economy. Stocks are the Economy for...
As RR's break highs after a short period of consolidation... Panic is in the Air. It's rare Air up here and leads us to conclude we may $1.5 Trillion in Fed Facilities be afforded to the 3 Amigos. Simply, a stunning Fear within the perceived "Flight to Safety" Spoiler, it will not end well.
Nears... We observed similar action in the RR Pool during the 2006-2008 Period. The demand for Safety was in full force prior to Safety itself being demonitzed with $34 Trillion in TARP TALF and Ralph. Buyers are repeating the sames mistakes then as now. Increased selling pressure by paniced Retail Investors lowered prices and raised yields on corporate bonds...
Not a Fan of Drama(s). Consider this antithetical to Drama. Safety, a great deal of it is being bought in Size. Both, The Federal Reserve and the Unites States Treasury are removing it at a rapid pace - Liquidity. This would appear counter-intuitive as the Equities Complex continues to make ATH after...
Capital Flight and the demand for Tier 1 collateral is facing a severe shortage. The US Treasury has made it clear, it will be joining the Draino swirl party. All is well, come on in gamblers, the water is fine :)
Nothing to see here, of course. Unless you are a student of History and well versed in the prior Financial Crisis of 2004 - 2008. We identified the issues with respect to RMBS in March of 2004, published it and waited ~ 13 months for it to unfold. A year later the Equities Complex began to see large distortions which resulted in a 10X leverUp by the Fed...
On of the few main investing topics in the span of couple of weeks is inflation. We get informations coming in that in the next months it will get even higher and we need to be prepared for it. But, if everyone expects inflation rise in the 3rd quater of the year, then knowing the market laws (everyone's usually wrong), it is worth considering if, there is...