SOUNDING OFF ON MARKETS AND FED

To give you an idea of concentration of technology, as we write this, the Dow is up 600 points and the S&P 500 is still down. This is because of the major concentration of big Tech. The good news is as big tech pulls in with some names breaking down, much of the rest of the market is kicking in, especially them big banks and now even the regional banks coming on strong.

Small caps and mid caps have broken out of range bringing along areas that have been comatose. Because of the easier money, everything economical is on the move just based on perception because as you know, markets do love easier money.

After all the yapping about it, we will continue to repeat there is only one thing that matters when it comes to the central bank. It’s not what Powell does or says. It is not what the president Trump says or wants. The only thing that matters is a cooperative long-term yield market and so far, so good. Yields have backed down since the latest fed move. Personally, we loathe that Mr. bubble is now going to buy bonds again with conjured up money but we are hearing he’s only buying up short term bonds. So he says! We would just like to shut him and the whole fed down because his interference in the bond market is what caused most of the massive inflation and all the distortions you are seeing to this day in the housing market.

If you want to really know why they want rates lower, chew on this: The US has added $2.1 trillion of debt since DOGE was formed on January 20 of this year. We have lost any shred of hope on this.

Speaking of concentration, the Dow is into new high ground even though a bunch of the Dow 30 is not acting well. But when you are price sensitive and when you have Goldman Sachs 22 times more important than Verizon, there is your influence and concentration. If Goldman moves 1%, it affects the DOW by almost 60 points. Verizon about 2.5 points.

This easier money has caused the dollar to swoon even more lifting commodities and our multinationals. Gold, silver and other metals going good.

Warning…if they go too easy again, expect inflation to pick up again. Inflation is an outcome of stupid monetary policy. Mark those words down. If we were running the Fed, we would be done. If we had the president’s ear, we would tell him the 10 and the 30 matter 100x more than fed funds.

Put this in your file manager:

The architects of AI are Time’s 2025 person of the year!!!

Lastly, what in blue hell is happening to our beloved Mets? Many of our favorites going bye bye. We’ll end on that sports notes.