[vc_row][vc_column][vc_column_text]Going to combine the two blogs today as STUP Is related to the financial markets as well. That is where I will start with President Donald and one of his consistent inconsistencies. It probably would not be difficult to make the Prez the STUP weekly topic, but we’ll leave that job to MSNBC. I don’t get how they don’t get that pouncing on every gaffe makes them look like the stooge they think he is. Follow that?
President Donald has been highly critical of Fed Head Jay Powell for not lowering interest rates and continuing to pay down the Fed’s debts. In one breath he takes credit for the best economy ever (EVER?) and how the Fed should lower interest rates a half point immediately. The best economy ever would warrant a fifty basis point hike, not a cut. I guess he is kind of a self serving guy, huh?
His tweeting fell on well placed ignores by Powell, who is doing noble and effective work IMO. So the Prez took it a step further appointing two… I almost said lackeys, but they both have legitimate qualifications for Federal Reserve positions. One is Herman Cain who made a mark in fast food and also was the President of the KC/Omaha Federal Reserve. Steven Moore is an economist that has a decent resume in the public and private sector.
They have been lambasted by the left because that is what they do in DC the majority of the time these days. Most members of the Fed have a political party affiliation, but these two are a couple of the highest profile homers ever. John Oliver is terminally left, but can be very funny. He gave an amusing take on the appointees. Interesting that some at CNN & MSNBC are not labeling the hyper criticism of Cain a form of racism? Square that one up guys and gals…I mean women.
So that is my shot at President Donald. I have become numb to most of his apparent blunders as so many end up being intentional and he gets the outcome he was looking for. One thing he is masterful at is playing the media three to four steps out while most of his opponents are stuck on “Did you see that!’
Flip Flopping a couple of weeks ago so far has turned out to be the right call. The Asian break outs have followed through and appear to have more stamina in them. Most domestic indices and sectors have yet to meet the real test making all time highs. It appears to be a fait accompli considering the breadth and depth of the rally.
The one sector which convinced me to come over from the dark side was the High Yield market (junk bonds), which HAS moved to all time highs! In fact the ETF proxy for the sector, JNK made a new high back in late January. Shoulda come over then?[/vc_column_text][vc_single_image image=”1279″ alignment=”center”][vc_column_text]Told a colleague today the most bullish thing Junk Bonds and the market could do right now is go sideways for a while. Work off the very bubble like look of its chart. Have a feeling tomorrow could begin the well deserved respite for this relentless bull.
“I don’t make jokes. I just watch government and report the facts”
– Will Rogers (back then too?)
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Disclaimer: Remember everything I said could be wrong, the market always has the last word.