Payne: Two things again that move markets sentiment and fundamentals. The sentiment I think the Fed ruined it. I think Powell crushed this market on October 3rd. Powell crushed this market. Look at October 3rd and look what’s happened since then. https://www.thegatewaypundit.com/20...ell-crushed-this-market-on-october-3rd-video/
In one of Powell's appearances before congress he stated repeatedly that it is not the Fed's job to protect investors from losses. He repeated it, like he meant it. I was surprised it did not garner more attention when he made those statements. I will have to find the video and distribute it.
Yes. Everyone had become accustomed to Janet Yellen walking on her tippy toes to not "upset" the markets. On the occasions that she mis "communicated" her policy stance she had an assortment of other Fed governors "clarify" what she meant.
The market is not crushed. Someone needs to tell Payne to stop being so histrionic because the real PAIN isn't here yet.
"This market is based on the false premise that borrowing money from the Fed should be free!" Then the market invests or loans that free money at a fairly high interest rate and makes a large profit. Question: "What the Hell kind of business model is that?" That kind of business model requires no expertise, no strategy, no planning.....no nothing! The stock market has been given a free ride for 9 years, and now when the Fed is finally trying going to NORMALIZE the Fed Lending Rate (3.0% to 3.25% by 2020), Wall Street no longer knows how to make money the old fashion way! "Wall Street has become a welfare recipient for too long, and now they no longer want to have to actually work for a living." Note: We don't have a bear market unless the SP500 has a monthly candle close below its 40 month moving average (2,375). This has held true since the early 1990's that I can remember. [SP500, 4 years, monthly candles, 20ma (brown line) and 40ma (blue line)]
I agree that it's not the Fed's job to protect investors from losses, however, why promise 4 more rate hikes? Why not do as Yellen said and remain "data-dependent"? Sure, plan to hike in 3 months, but just say you'll plan to do more rate hikes if the economic data continues to look good, but each hike will be evaluated based on the data at that time. I miss Yellen.
The reality is rates are rising (due to economic AND fiscal reasons i.e. big gubmint spending who'd a thunk it) and the "market" knows it, no matter what nonsense people prefer Powell to instead spout. But does anyone really watch clueless Payne, yet another those who can't teach or in his case talk about it on Cable TV??? Not to mention being fined by SEC for multiple complaints for pumping his clients to purchase stocks he got kickbacks on.
It's not actually in the government's best interest to increase rates as the cost to service debt goes up.
Yes I know but they have no say in the matter, other than directly forcing/threatening The Fed to print more money/lower rates which will only make the day of reckoning that much worse when it finally comes. IMO they (other than Drumpf) don't want to to do that at this point.