Today the Fed dropped a bomb on Wall Street's psyche by specifically naming areas of the market are over-valued.
Unsurprisingly there was an uproar of whining that all sounded like:
In the midst of that noise, most are missing the point the market is making. In the last few weeks every hint of inflation has vanished. It's astonishing. Just last week the noise was how the Fed will be behind the curve re: inflation. Now with QE set to end in October, we have this potential paradigm shifting reversal shaping up. This could get very interesting in a hurry.
Unsurprisingly there was an uproar of whining that all sounded like:
'what is Yellen doing talking down my small cap, biotech and social media stocks?!!'
In the midst of that noise, most are missing the point the market is making. In the last few weeks every hint of inflation has vanished. It's astonishing. Just last week the noise was how the Fed will be behind the curve re: inflation. Now with QE set to end in October, we have this potential paradigm shifting reversal shaping up. This could get very interesting in a hurry.
Tomorrow's PPI and Next week's CPI (Tuesday pre-mkt) and the reaction to them will be interesting.
Trade 'em well
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