TSP & Vanguard Smart Investor Posts
While a Federal Reserve Chairman communicating in a balanced way seems appropriate, the problem lies in the fact the financial markets today are not balanced. The Market only hears what it wants to hear and that is that the Fed is about to save it once again.
Let’s hope no one assumes that the $250,000 FDIC deposit insurance will pay one penny toward crypto losses of depositors.
Reminder: Bull markets never have 4% up days, only Bear markets do. And this one was due to CPI beating expectations due to a massive revision in Healthcare inflation dumped into October numbers.
In the quarter just ended the SP500 Earnings Per Share was down over 5% after taking out the energy sector’s record profits.
The war has already begun. China is still in the Shaping phase in the physical sphere, but their economic power and our economic vulnerabilities have been advancing steadily for decades. Is your life and investment portfolio ready.
Most think “lunatic fringe.” Yet, there is nothing as fundamental, vital, as urgent as Sound Money. Stable money and Credit that we can trust; that doesn’t inherently cause trouble; that doesn’t unleash the Scourge of Inflation.
In particular, I fear concurrent crises of confidence in policymaking and market structure. De-risking/deleveraging will feed illiquidity and market dislocation. Global derivatives markets will be severely tested.
“the sudden appearance of the Bond Vigilantes in the gilts markets (after all these years) was the most portentous market development in a week of portentous developments.”
Bailing out the Wall Street megabanks that are serially fined and hit with felony counts appears to be catching on as a major career advancement strategy at the New York Fed.
After overwhelming evidence was obtained of wrong doing, nothing was done, no body wants to talk about it, minimal changes were made.