Friday, August 27, 2021

Powell Pumps the Market. Unfortunately, the Fed Is Always Wrong

The stock market rally finally suffered substantial losses Thursday as the 10-year Treasury yields continue to rise. So, do we find ourselves staring down the barrel of a broad stock market retreat or a sector rotation?

Powell Pumps the Market. Unfortunately, the Fed Is Always Wrong

August 27, 2021

We received a ton of economic data this week, but we had to wait until the end for the information that mattered most...


Friday morning, Federal Reserve Chair Jerome Powell provided markets the pump they were waiting for — as expected — announcing no immediate tapering of asset purchases, and no plans to raise interest rates.


Shocker, I know.


But the justification was as mealy mouthed as it gets from the moment he sat down at the microphone to tell the curious story of consumer response to COVID-19.


"In a reversal of typical patterns in a downturn," Powell said, "aggregate personal income rose rather than fell…"


Curious. Curious indeed...

And Dead Wrong

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A Perfect Dip to Buy as the Delta Variant Peaks

August 25, 2021

The delta variant narrative permeating financial media these past few weeks has spooked a whole bunch of people.

Continue Reading

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