A 1-2 PUNCH?

OIL and the CRB index on the move. That’s only a basket of 19 commodities. GOLD all-time highs.
The 10 year yield moving above what we have stated was a vital technical area at 4.354%.
This occurring while we are being told inflation is now under control. Hmmm!
We must state for the record we believe the free markets before we believe one man who printed to $9 trillion causing all kinds of distortions. As of this second, the free markets are talking higher commodity inflation. 
All this with bears at multi-year lows. Complacency at multi-year highs. Short selling has dropped markedly all indicating where are the bears?
Anything is possible but for quite a long time, higher yields and commodities have not been good news. We are on watch. We have stated time and time again on our tv appearances on Fox Business (if you do not get it, demand it) that if yields head towards 5%, not sure an overvalued market could take it. 
Let us finish by saying if he decides to lower rates while the free markets say otherwise….. remember how he was loathe to raise rates as the free markets were screaming inflation? Transitory? Regardless what he or anyone else thinks, we do not believe he is in control of anything. He is not the economy. We are. We are now on support levels watch.

2 Comments

  1. Agreed. They are so trigger-happy to lower interest rates. Rock hard. Classically conditioned.

    What could possibly go wrong?

    Positive vibes towards your parents. My grandmother is close in age and in very similar circumstances. Her days are limited. She served as a Mother to me. My real Mom belongs in one of those rubber rooms.

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