The news is out. All over town. And the winners are CT and DP.
The Yellen Report announced today at the FOMC meeting that "considerable time" and "dot plot," sounds like two fillies at Santa Anita Downs about to enter the starting gate, are the winners and will continue to play a role in Fed guidance.
In releasing it's latest monetary policy gibberish, the boys and girls of the Fed left interest rates alone and, as expected, continued cutting back it's QE stimulus program by $10 billion. The Fed also released its latest Summary of Economic Projections, which includes the latest dot plot, which shows expectations for rates over the long run are higher than they were in June. The market is seeing these dots as a hawkish signal from the Fed.
Gibberish is really too kind of a term for these poor, pathetic bureaucrats. Given their stumbling, bumbling style, it's even questionable just how well-meaning they are.
In the military one learns many things, but one of the most important is, stupidity will get you killed.
We already have "considerable time" and "dot plot." Now here's another one, perhaps even more feeble, to describe the labor market, "significant underutilization."
"On balance, labor market conditions improved somewhat further; however, the unemployment rate is little changed and a range of labor market indicators suggests that there remains significant underutilization of labor resources."
Cutting through the gibberish, the take away message is "that a highly accommodative stance of monetary policy remains appropriate."
Plan your investments accordingly with a keen eye open for the eventual train wreck. There's surely some more air in this market puppy, but don't hesitate to periodically take some profits when they appear.
Recall this is the market you're playing, not a game of Texas Hold'em.
t. man hatter
In the military one learns many things, but one of the most important is, stupidity will get you killed.
We already have "considerable time" and "dot plot." Now here's another one, perhaps even more feeble, to describe the labor market, "significant underutilization."
"On balance, labor market conditions improved somewhat further; however, the unemployment rate is little changed and a range of labor market indicators suggests that there remains significant underutilization of labor resources."
Cutting through the gibberish, the take away message is "that a highly accommodative stance of monetary policy remains appropriate."
Plan your investments accordingly with a keen eye open for the eventual train wreck. There's surely some more air in this market puppy, but don't hesitate to periodically take some profits when they appear.
Recall this is the market you're playing, not a game of Texas Hold'em.
t. man hatter
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