The bull view on bonds isn't totally crazy. The prudent thing is to remain defensive on rates.
The net result of the action is to maintain a neutral to positive macro outlook for equities.
Regardless of one's politics, this ought to scare you as an investor.
With so many questions around inflation, COVID, the Fed, and stimulus and policy, it's hard to determine what will happen in the rates market. Here's my take.
Two index charts shifted from neutral to positive late last week while the 10-year Treasury tested resistance.
Let see what employment numbers and weakening economic data could mean for policies such as quantitative easing tapering.
If the latest FOMC meeting left you scratching your head, then you're not alone. Let's try to pick apart what's really going on.
The Fed hopes its efforts will lead to sustainable GDP growth, but if inflation starts to run away too quickly, then Powell and company's hands could be tied.
This week will tax your brain. Your ability to focus on what really matters will be tested.
Normally DHI would be jubilant with the level of demand they are seeing. Not this time.