By EconMatters
We discuss how traders are in a Euphoric Bubble Mentality where they can buy every dip and feel there is no risk of losing money in a Market Environment similar to other Market Bubbles at the Euphoria Stage of Excessive Risk Taking. The Fed Needs to Raise Rates 50 Basis Points at the March Meeting!
https://www.youtube.com/watch?v=bq4CoSlcCKA
Janet Yellen continues to demonstrate that she is either profoundly ignorant or dishonest. Neither of those are positive qualities for a Fed Chair.
Having maintained interest rates at essentially ZERO for seven years during the Obama years, Yellen suddenly believes it would be “unwise” to wait too long to raise rates now.
It’s a bizarre claim, particularly when you consider:
1) The US economy is limping along at best and entering a recession at worse (2016 GDP growth was a measly 1.9% and a the latest spate of data has all suggested a contraction is underway).
Via Dana Lyons' Tumblr,
The Nasdaq 100 rally is arguably extended now, based on the utilization of this charting analysis.
As discussed yesterday, over the course of the past 17 years, Goldman trimmed its cash equity trading desk from 600 workers to just 2, replacing virtually all carbon-based traders with automated programs, engineers and algos.
In the latest monthly Fund Managers Survey conducted by Bank of America, virtually none of the biggest "tail risks" noted by Wall Street's smart money (the 175 respondents to the survey collectively run a total of $543 billion) in February was touched upon in January, suggesting Wall Street has a whole new set of things that keep it up at night.
As the following chart shows, when asked what the biggest ‘tail risks’ are this month, 36% responded European elections raising disintegration risk; 32% said Trade war; while only 13% said "Crash in global bond markets."