Episode 715: The DC Today - Thursday, October 5, 2023
More or less, there is one market movement right now, even if it has three parts. Bond yields and the dollar are in the same direction; stocks are in the opposite direction
More or less, there is one market movement right now, even if it has three parts. Bond yields and the dollar are in the same direction; stocks are in the opposite direction
Today's Post - https://bahnsen.co/3F8Luji
More or less, there is one market movement right now, even if it has three parts. Bond yields and the dollar are in the same direction; stocks are in the opposite direction. Those three in those respective relationships are all part of one story, not three different stories.
In a nutshell, I remain convinced that the story has become one of quantitative tightening. The Fed is a seller (sort of) of Treasuries, not a buyer (meaning they are not rolling over matured bonds). Global central banks are buying less to support their own currencies. And that leaves individuals and economic buyers who buy at good yields but not lower yields.
On Capitol Hill, the race for the new speaker is setting up to be a real circus. I know, you are shocked.
Gasoline is down over -20% in the last three weeks!
Mary Daly of the San Francisco Fed said in a speech today that, wait for it, holding rates where they are is also restrictive monetary policy! Hmmmm, you don’t say.
Other than that, it was an uneventful day, and the intra-day swing was only -225 points (the chart visually looks more violent) – all in a flat day.
Links mentioned in this episode: TheDCToday.com DividendCafe.com TheBahnsenGroup.com
David is the Founder, Managing Partner, and the Chief Investment Officer of The Bahnsen Group.
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