“Don’t Fight the Fed”

In the immortal words of Marty Zweig, “Don’t Fight the Fed”.

And the markets didn’t, which is why oil, lumber, interest rates and stocks all cratered to Powell’s tin-eared comment that further tightening in 2019 was on “automatic pilot”.

But today, it’s a different tune.

You have no idea how glad I am that he listened. Commodity prices are climbing (relieving the pressure that might come about because of extreme deflation) and long-term rates are climbing (reducing the likelihood of an inverted yield curve).



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