Bond yields are back, triple witching is flying its broomstick, and the markets are booming. Why? There’s a consensus there’s more QE on the horizon and even LOWERING of rates.
Don’t you count on it. It isn’t going to happen. The best we can hope for is flatlining at our current high rates, which will of course destroy home sales.
Why? Because the HUGE 1.5 Trillion dollar deficit to pay for the welfare and disability and black handouts must be fed. And they can only be fed with HIGH RATES as outsiders question the stability of the dollar.
It’s a dangerous game and the best course of action is to do nothing. Sadly Powell seems hell bent to keep the interest rate raising game going on and on.
Only the rest of the world being more f-ed up than the USA has protected us so far but more and more transactions in the China zone are being done without the USD. So hold on, it’s going to be a bumpy ride.
Prediction: Bumpy markets for 2019. Trade the VIX and make a killing.