Ep. 332 – A Loss of Confidence?

The Kapital News
The Kapital News
Ep. 332 - A Loss of Confidence?

The Fed to the rescue! Injecting $100 Billion into the overnight markets and cutting interest rates by 50bps – an “emergency cut” – and stocks still fell nearly 3% across the board and the US 10-year note fell below 1.00% for the first time in history!

Are markets finally waking up to the fact that diminishing marginal returns have more than kicked in and monetary and fiscal stimulus is not a panacea? COVID19 is being used as the cover to justify such an emergency cut by the Fed and other central banks and despite the large sell-off today – the futures markets are expecting the Fed to cut further during their upcoming March meeting. Expectations are for another cut of at least 25bps, but some say they may even take the Fed Funds Rate all the way down to zero! And don’t forget folks, this is the greatest economy of all-time and COVID19 is completely under control here in the USA and there’s nothing to see. Huge eyeroll!

There is no leadership. There is no accountability. There is no credibility. And the hits just keep on coming. Monetary policy cannot remedy the kind of supply and demand shock(s) we are witnessing. Nor can such policies always pack the same punch that markets have grown accustomed to over the last decade. Add to all of this the structural issues that plague country after country and you have yourself a nice recipe for disaster. Disaster on multiple fronts – political, societal, economic, financial, and even public health. A little leadership and truth telling would go a long way, but don’t hold your breath. No one knows the future, but the stage is set for some very rough waters ahead. Are your ready? Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Recession #COVID19 #Coronavirus #Gold #Silver #Bonds #Oil #Politics #Truth #EndTheFed

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