Heat has returned!!! Super muggy here and hot. In the Boston area we would say it is a "skortcha!".
Get your Friday Night requests in as well, we need a good show.
Another ugly day, I can't really recount it all. I posted this last year on November 3rd, 2010 when QE 2.0 went into effect:
"QE has been ineffective in much of anything useful. It has set a real bid under commodities and equities, but those are not reflected in the CPI anyway.
The yield curve will remain steep which will aid the banks in case mortgage losses and putbacks end up not being solved through legislation due to the new makeup of CONgress.
So what does this all mean?
Short Term (next 8 months or so)
-equities will rise
-commodities will rise
-gold and silver will rise
-junk yields will soar
Basically what you have seen for a while will continue on. I can see a scenario where a monster move up occurs in stocks to a blow off top, but I think it will more of the stair step 1% days as far as the eye can see kind of thing. Commodities may see a more violent surge. This is not a good thing but it may support aggregate demand if folks try to stock oil in tanks under their home. You have heard of contango, right?
What can you do? Well, savings are trash and cash is dead. It has been and I had hoped for a more sane policy and reform but then I am a fool. Some ideas:
-Past a POMO day schedule near your desk and if you can day trade move with the POMO schedule as detailed many places like Zero Hedge. One note: this has been so obvious and written about the real players may try and move this around a bit but the vicinity will remain.
-Buy broad equity indices and hold them.
-Buy junk bonds
-Buy bad muni bonds
This is almost Tepper-esque in the "can't lose" sense.
This is not advice. Here is what I aim to do.
I am going to really spend some time looking at buys that I can stomach. This will exclude broad indices and in particular anything financial, housing, or US automotive. I am looking to start trying to get some return on my money that I can play with, plus it would be more fun.
To this end I am using my own way of looking for buys and I will be buying and testing the iBankCoin PPT as another tool. I will test some ideas out on the thing and see how it fits my way of trading. I hope it proves useful.
Long Term (who cares, we are all dead right?)
This move serves as a start of a long term commitment by the FED to markets for support without end. While this did not work well for Japan, things are a bit different here. Nothing over the next year will really get much better in the real economy, but that hardly matters when banks are making serious coin, corporations can get money on the ultra cheap to buy back shares, and expansion overseas where much of the free cash will be deployed will prove a hit."
And here we are today. Not much to add.
Open thread night then. Ask me about anything you want me to answer or talk about and I will tonight in the comments or in this post. If I miss anything I can get to it tomorrow night. If you are on Twitter, find me with @GYSC16, same avatar.
Have a good night.