Yellen was hiking rates just twice during the 2015 top that went up to the Trump election.....with nothing on the Fed balance sheet reduction yet. And that was before the Trump tax reform. If they're going to take down the Fed in grand style, then this is the best possible circus for making that happen. Maybe I'm just confused about all this......but I don't think so after seeing the 1998 LTCM and the 2009 GFC fiascos driven by the Fed. It takes a combination of experience being able to feel the economy and the market. Nobody can hike rates today with the RUT looking like it does.....not today and not at all next year. The damage has to repair itself. It's not about being able to trade for endless profits on the downside....it's the fact that we have never seen the Fed this far out in left field before. Greenspan could do better than this....
I"m not a hedge fund expert, but seems like those guys are going to bust this market much further down by Dec 31......tax selling that nobody would have ever imagined. If the redemptions just keep going, it's like one big mechanical sell program after another until the end of the session on Dec 31.
The Fed can only have very short term vision at 20/20......no way they can see even 5 minutes into 2019 like this. Just set the Fed rate equal to the US 2 year treasury and take care of the problem.....it was only 2.65 percent yesterday. And tell the Fed they can only cut rates below that level, or do a mechanical rate hike cycle back up to the 2 year UST level. The most important thing is they can't do any public speaking ever again.....we can let all the 2 year olds on the planet handle that.
You gut them like a 4 star chinook salmon......
