Is the Fed’s Influence Declining ?
We keep an internal measure of how much we believe the FED is in control of the economy. This measure includes inputs from hard assets, paper assets, debt factors, commodities, and precious metals. Prior to today we have used this chart as a background factor rather than publicly issued piece.
Our call on the market last Thursday, to sell out Bond and Gold market positions was based around the internals of this chart. Currently we are solely on the short side of the stock market, Nasdaq and S&P.