Peak Earnings vs. Trough Inflation

The deeper picture is unfolding today, the yield curve is flipping, the working interest rate, the 10 year yield, is pushing to go parabolic to the upside. All the funny money crowd are buying stocks right into peak earnings, they have had a sweet ride on the back of the FED.

On a side note, the inside news over the weekend, story started by the American Prospect it appears, shows that a dive down into the disclosed stock trading records of FED Chair Powell, shows that he dumped between 1 and 5 million dollars of stocks in October 2020. Why would he do that? My guess he saw that his buddy, Donald Trump, was looking like he was going to lose the election, and Powell believed that stocks were up because of Trump. Plus being a Republican, he probably thought a Biden Presidency would be a disaster for stocks. Stocks are up 35 percent since Powell dumped, it would be so interesting to look into his mind and how he is trying to rationalize anything, like how could he have been so wrong, let alone analyze real inflation numbers now.

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