Watch these three ETFs for the signs that Fed support is working.
We will enter a hyper inflationary world at some point. In that environment bonds and equities will move together in the same direction, and the 60-40 model will not work anymore.
Panic always creates trading opportunities, and right now those opportunities lie in corporate bonds and preferred stocks.
Let's review the positives and negatives of what's happening right now.
Action in a lot of these other securities only makes sense if there is a liquidity squeeze going on.
These are not investable markets, yet. Wait it out, the damage is beyond a small fix now.
Dramatically slashing interest rates to zero and promising huge asset purchases are instilling fear, not confidence, in market participants.
The markets clearly do not like the message the president delivered in his talk Wednesday night on how Washington will deal with the coronavirus.
An evolving market structure, dominated by products and strategies that know everything about price and nothing about value, will now be tested.
During the Financial Crisis, the bailouts were politically toxic. Today, not providing this kind of stimulus will be politically toxic.