Notes for Friday…

Notes for Friday

  1. Long Oil and commodities have been two of the hideout trades along with Bitcoin during this transition period since February 2nd.  It would appear that Bitcoin is a better place to hide, especially if you buy it on one of its panic sell-offs.
  2. Investors continue to ignore the New Economy areas other than the core element, chips, i.e. the Climate Tech areas including EV and Solar.  That will occur in time, like maybe late next week.
  3. At the moment the big guys on CNBC are renaming the Fang type of stocks as the “New Consumer Staple”, stocks like Meta, Amazon, Apple, etc; keying on cash in hand rather than future growth potential, that is probably ok for the moment.
  4. The FED’s problem and by inference conventional economists, is probably that they followed 12 years of artificial unconventional thinking (QE and zero rates) with traditional (kill the economy) response, this economy is so far beyond that. Real Growth has the power to overwhelm inflation. What it takes is a little faith in supply and demand.
  5. All this FED is accomplishing is killing the banks with the 3 month CD rates out of sync with market basket rates. Greenspan’s favorite indicator the 30 year vs the 5 year is turning up, (direction of the 50 day average) the sign of good market conditions.

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