Saturday, December 5, 2020

Tag: The Worst Performing Asset Class Since Trump’s Election-Really?

The Worst Performing Asset Class Since Trump’s Election-Really?

by Andy Hoffman, Miles Franklin:
Following Friday’s retail sales catastrophe, interest rates plunged, and the market-based odds of further Fed rate hikes declined to just 8{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} in September and 48{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} in December. Led, of course, by begrudging Wall Street cheerleaders like Goldman Sachs’ ALWAYS wrong Chief Economist, “Hapless Hatzius.” Who, like his partners-in-crime at the Fed; and likely, its soon-to-be-new Chairman Gary Cohn – who before he was appointed Trump’s top economic advisor, was Goldman’s Chief Operating Officer; dramatically overstated the economy’s “strength” – as part of its ongoing, but rapidly collapsing “economic strength” propaganda campaign.

Combining this horrific economic data with last week’s unprecedented Fed about-face; when, following weeks’ of fraudulent “hawk-speak,” Janet Yellen gave the most dovish speech imaginable; and it couldn’t be clearer that not only is “Trump-flation” dead, but any remaining “hope” of economic improvement. Consequently, as I vehemently espoused Friday, the path of least resistance for interest rates is down – until the “bond vigilantes” inevitably show up; and for Precious Metals, up.