19 Mar 2020
Post by MoneyRadio Staff
—–Wow. In the past week, our central bank has:—–
1) Slashed rates to 0%.
2) Add QE of $750 billion to the already NOT QE.
3) 0.25 loans to banks.
4) Swap lines.
5) Commercial paper facility.
6) Primary dealer facility.
7) Money market facility.
——None of this helped markets. We then got other countries across the globe take action with the Bank of Japan and Bank of Australia doing their own QE which led into the ECB enacting 750 billion of Euros among other “stuff!”. We must tell you, because of all this, we thought we would wake up to one of those gigantic gaps to the upside. Instead, futures are down again. We did get a decent bump at the close yesterday.—–
—–We are noticing bond funds, muni-funds, preferred funds all now getting busted up because of their leverage and because of all the crap that is going on. Normally, we would be telling you we have to have some sort of huge counter-trend rally but with the world being in economic and health limbo, nothing doing just yet. The market is not even paying attention to the trillions being thrown around. In the past, markets would react like a little dog getting bones. We continue to see leadership in the benefactors of this event but continue to believe those stock moves will have an expiration date when this ends. And if you think of playing, CLOROX (CLX) hit a high of $214 yesterday before closing at $190 so have fun playing that.—–
—–As things change, if things change, we will alert you.—–