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Strategies & Market Trends : ajtj's Post-Lobotomy Market Charts and Thoughts

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ajtj99
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To: towerdog who wrote (83189)12/14/2023 10:44:54 AM
From: The Ox2 Recommendations  Read Replies (3) of 97984
 

So, what do you think the Fed has broken?


Right now, not much.

Overreactions to the clear changes coming in FED policy, it seems to me, is what we are seeing these past 3 or 4 days. $DXY dropping $2 and VIX wanting to turn back up, OIL up $4/bbl and so many others running hard, XBI, KRE, SOX, and so on... TYX down 1% in the last 30 trading days.

From a long term perspective, we're just coping with the needlessly excessively low interest rates from prior to the pandemic until they finally spiked back up. War on multiple fronts has helped with the extreme swings.

Overall, I think the US markets are handling the turmoil very well. TYX will settle down over the next few years, IMO. I have expectations for rates to be between 2.8 and 1.6 on TYX but that's just me. No reason we have to race back down below 2 but it wouldn't surprise me either.

I totally welcome the views of others on this thread!! Good time of year for these "glimpses of the future"....
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