‘Headline Risk’ In Real-Time

I just received a note from a colleague with the following message: “Looks like your call for caution via the election results in LA is voided.”

Here’s what I wrote back…

“Can you explain what economic measures caused the ‘markets’ to reassess the possible implications that overshadow China’s poo-pooing any resolution to trade negotiations?”

His response: “No, was there?”

My response: “Trump Says Discussed “Negative Rates” In Unscheduled Monday Meeting With Chair Powell”

“Soon as the headline hit – the ‘market’ rocketed off the lows from a weakening open to new, never before seen in human history highs. Again!

Welcome to ‘Headline risk’ in real-time. The issue now is if it gets ‘poo-pooed’ as I say, by anyone at the Fed – things can change on a dime. Literally.

Just contemplate where we are right now, this time in history: Negative Rates in the U.S. are now not only a ‘discussed’ issue at the highest levels in the United States, but worse (depending on your viewpoint) propels ‘markets’ even higher.

You still think we’re not in a central bank infused bubble? If you do…

I still have that ocean-front property available in KY you can have super cheap.”

© 2019 Mark St.Cyr