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Strategies & Market Trends : US Inflation and What To Do About It -- Ignore unavailable to you. Want to Upgrade?

To: John Vosilla who wrote (980)	4/1/2019 6:44:49 AM
From: RetiredNow	Read Replies (1) \| Respond to of 1504

I think the Fed may actually drop rates. Kudlow is calling for a 50 bps drop. The Fed has already signaled they will defend markets. I don't agree that's the role of the Fed, but in these times, the Fed is nothing more than a schill for the 1%. So the likelihood is high they will defend markets and turn us into Japan. That's my best guess. If they do that, then we'll see a steepening attempt, where they lower rates on the front end and sell off the long end of the balance sheet. That would twist the yield curve. If that happens, then financials would be a good bet. Housing would get a new fire in the belly and we could avoid a severe downturn. I still think a downturn and or a short recession is in the cards, because whatever damage has been done, has already happened. We've been inverted through the 2 year for a long while, then recently it went to the 5 years. Then even more recently it went to the 10 year. The 30 year is the only place it didn't steepen. However, the 3 month and 10 year inversion is one of the most reliable indicators of impending recession. So worth watching.