The last FOMC meeting for 2016 has concluded, and the outcome is a slightly more hawkish tone than investors initially expected. The Fed has hiked the federal fund’s target rate by 25bps to 0.75% for the second time in two years. However, this hike was largely in line with the consensus expectations.
What caught investors by surprise was the revision of the Fed’s projection for rates in 2017. A revision that demonstrates that the median of estimates by the Federal Reserve members point to not two rate hikes, as in the September meeting, but three. Experience suggests that investors should take the Fed’s revision with a pinch of salt. After all, it was only this year that we witnessed the Federal Reserve revise its rate projections down, a move that followed an increase earlier in the year. And yet, judging by the reaction of Treasuries and the dollar, this revision is taken with some gravity. In fact, it paves the way for another dollar higher. The question is why? Continue reading "Fed Paves The Way For Broad Dollar Rally"→
You know who they are; they are the ones who denied and denied the ginned up bull market in US stocks that nearly tripled under the socialist regime, circa 2009-2016. They are the ones who clung to gold well past the caution point last summer. They are (yes, it’s another snappy buzz phrase to either entertain, bore or annoy you… ) the S.O.D., AKA the Sons of Druckenmiller, AKA politically biased and newly activated market participants. Reference…
Still feel like following the MSM and these media stars they shove down gullible peoples’ throats?
So the well known and much respected Druck was bullish on gold and bearish on the US stock market until he famously flipped his script literally upside down in a knee-jerked response to the presidential election, which cast off the commies and brought in a man who promised to ‘reshore’ America’s outsourced industries (folks, the smoke stacks are gone and they are not coming back, although more Robots may well be, in time).* He has promised to cut taxes including especially, corporate taxes, and he has promised myriad other fixes to help the economy trickle down to the long-abused middle class. Continue reading "Politically-Driven S.O.D. (Sons of Druckenmiller) To Lose Again"→