Tag Archives: FED
Gold rallied about 2% after the rate increase announcement yesterday. The financial media believes that this was a typical “buy the fact” reaction. They are wrong.
In 2010 and 2011 the market rebounded and continued to make new highs because of action by the Fed. At this point, Fed inaction is what the market wants. In other words, the market dictates policy and Fed obeys.
Bond yields dropped near all-time lows last week. The 10-year Note yield closed last Friday at 1.70%, which was the exact, intraday, all-time low of September 23, 2011. Shorts, and there were plenty of them it seems, were squeezed all the way … Continue reading