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Strategies & Market Trends : The Art of Investing
PICK 53.89-0.8%Jan 8 4:00 PM EST

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To: Sun Tzu who wrote (5596)9/30/2022 9:59:47 PM
From: teevee3 Recommendations

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isopatch
sixty2nds
Sun Tzu

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The bank of England just announced their bond purchases are effectively unlimited in an effort to prevent insurance company fail. No doubt US insurance companies are also in trouble due to interest rate hedges. To bail out insurance companies, I expect Powel will announce he will repurchase treasuries and keep interest rates flat (no increase or decrease). This is as effective as cutting rates, which will likely follow later with rates going to near zero by next summer. In other words, it is a form of QE...... Insurance companies also buy lots of equities, so to meet margin calls, insurance companies will continue to sell off equity holdings, so the bottom is not yet in for equities. So how to play this in the markets? out of the money TLT calls.
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