Normally I would expect FED actions to be whatever is best for the democratic party since the democratic party controls them and the federal government, but everything they’re saying is bad for mid terms. I wonder if the dems are going to punt the mid terms, knowing they’ll lose the house and senate no matter what at this point, and are positioning for a rebound in 2024. Raise rates in 2022 so they’ll have something to cut starting late 2023.
whirlaway
2 years ago
Another 100+ points lower on the S&P and I predict that some Fed folks will come out of the woodwork saying there might not be so many rate hikes after all!
Captain Ahab
2 years ago
LMAO. All of this for 1/10 of one percent (0.1%). Imagine a 1% hike. People will jump off bridges.
Never fear, the Fed will save Fantasyland–it’s too big to fudge-up.
thimk
2 years ago
Well regarding O&G : we are emerging from a 2 year covid demand destruction . You can’t start up capacity as quickly as you can shut it down. Once things “normalize” to pre pandemic levels and return to trend line supply will catch up. And if we get more republican representation in Washington the mantra will be the Sarah Palin “drill baby drill” .
IN the meantime I will watch for Cramer’s ” they don’t know nothing rant” .
Esclaro
2 years ago
It’s hilarious seeing the comments from the gold bugs expecting a big move up! Gold is doing nothing and is going to do nothing. With the gold bugs it’s always next week, next month, next year blah blah blah. You may as well await JFK Junior’s return. Oh wait, you are the same people!
1-shot
2 years ago
The only questions left to be answered are how much? …
How far will stocks drop, how much will rates rise, how much time before a real recession starts, how much will gold rise and how much will crypcrap crater???
Six000mileyear
2 years ago
The 20 and 30 year yields have inverted. The 7 and 10 year yields are very close to inverting.
Since the August 2020 highs, gold has formed a triangle pattern. The next move should be exponentially explosive to the upside.
caradoc-again
2 years ago
Once the monthly MACD crosses up on Gold, watch it move. Very likely to be epic.
Eddie_T
2 years ago
My portfolio is green for the day in spite of the Dow still being down 400 points with an hour left to trade. It would be more green, but I’m down to about 50% O&G after picking up some uranium stocks and some pm and diversified miners, which are still in correction mode.
If I had more funds I’d love to add some more major gold producers here. They are also becoming cash cows at current gold prices. I do have NEM and SBSW and a few juniors.
The market is pricing in at least four 25 bps raises. I doubt we see more than two. I expect the broad markets to bottom on Friday with options expiry and then melt up. Some of my favorite pundits are even calling into question that we have a broad market top in 2022 at all. Unless oil collapses, I don’t really care.
Polymetal, ….I started buying (too much) at 1300…but then the russian perimeter took over….Maybe IF, and that remains to be seen, common sense prevails there might be one hell of a bargain there ….
Looks like a lot of people read this, up about 7.5% today 🙂
FromBrussels
2 years ago
… Let s just face it, this make believe, financial/ economic/social/geopolitical paradigm is at the end of its fn wits, there s no way out here on a fn overpopulated, living above its means, 8bln, human materialism craving predators, limited planet ! Time to face the music , it won t be nice ! ….and believe me, I belong to the moderate happy few so I wish things would continue the way they are, that ‘s wishful thinking though …. A war with Russia, whether planned or not by both sides is definitely in the cards, to ‘sort out’ things in a socially imposed ‘acceptable’ way ….the fn ‘shots’ might be part of the solution too ….who knows ….
I live about 30 kms from NATO headquarters, and believe me I would leave Belgium right now, problem is I haven’t got the heart to abandon my dementia suffering mom, she s in a care home but I go visit her every second day, no siblings either to help me out, so I can only hope russian missiles are accurate and not too powerful ….First missiles should go to Washinton though , that s were evilness originates….
Karlmarx
2 years ago
Me thinks that there are a lot of other factors that will lead to a recession long before the financial markets. Interest rates would still be negative after 4 hikes!
At 10 basis points for each of four hikes, it will take the Fed a couple of decades to reach positive real rates. Curiously, the T-bill/bond market has its own momentum–Mish’s charts show yields up 0.5% in a month and a half (Since Dec 3). Is that because of the Fed, or despite the Fed?
Tony Bennett
2 years ago
“And banking may just be the first sector to report in 2022 that, at least for now, the costs are running faster than the revenues.”
…
Banks package mortgages into securities that are offloaded to GSEs so maybe they won’t have to deal with losses to a great extent, but they have been feasting on fees generated by origination (purchase + refinance). Rising rates will turn feasting into fasting.
Tony Bennett
2 years ago
Mortgage rates are surging. 30 yr fixed up 3/4 point since August.
Luckily, housing plays no role in economy / consumer confidence …
Looks like a lot of people read this, up about 7.5% today 🙂