The Market is in a State of Disbelief
Volatility indicators show that the market is totally in a state of disbelief. So many times over the past 6 years the FED has stepped in and rescued the players. Will they step in now, and with what? We are looking at the potential of a perfect storm and maybe the safest tack for investors is cash.
1) It is obvious that the FED has waited to long to raise rates.
2) With Europe and China moving to more stimulus this is getting even tougher for the FED.
3) Volatility measures sit at very low levels as investors sit on their hands.
4) The dollar and bond markets are moving into the void.