As asked in the voice by my favorite Riddler, Frank Gorshin of the Batman® franchise. “Riddle me this!”
As sensitive (as in, existential) as these “markets” are to anything to do with Federal Reserve largess. Why would a voting member (Dallas Fed. President Robert Kaplan) of the Federal Reserve’s FOMC (the committee that deals out that very largess) suddenly state publicly the day before one of the most heavily anticipated earnings report with a backdrop of metrics that dwarf some depression era comparables say the following. To wit:
…emergency lending facilities launched by the central bank were necessary to support market function, “but they won’t be left in place indefinitely.”
Since the mouthing of that statement said “markets” have gone into free-fall. Tesla™ itself has taken a near 18% pop on price to near $1800 and as of this writing has wiped out that entire gain flirting with going red on the day.
Again, I ask: Why?
Think about it.
© 2020 Mark St.Cyr