Through-out the history of finance time decay happens, people forget its human nature.
Federal funds climbs the wall, people panic followed by entering the market causing a return to normal, everything is fine this time is different.
Whats that? the Federal funds start to fall faster than the Berlin wall, this is good right, cheaper effective cash.
As the layoffs rise, the inflation falls, as inflation falls governments can't generate income taxing deflation.
Easy money starts to flow as rates continue to fall, SPY must rise tall!, continues to fall, follow the yellow brick road with Gold, follow the orange brick road with Bitcoin.
Yellow rises fast, orange even faster and more violently! which asset will declare victory?
When the wizard drops the rates, be careful shorting Bitcoin and Gold sometimes reality is hard to understand.
\\ Signing off
Federal funds climbs the wall, people panic followed by entering the market causing a return to normal, everything is fine this time is different.
Whats that? the Federal funds start to fall faster than the Berlin wall, this is good right, cheaper effective cash.
As the layoffs rise, the inflation falls, as inflation falls governments can't generate income taxing deflation.
Easy money starts to flow as rates continue to fall, SPY must rise tall!, continues to fall, follow the yellow brick road with Gold, follow the orange brick road with Bitcoin.
Yellow rises fast, orange even faster and more violently! which asset will declare victory?
When the wizard drops the rates, be careful shorting Bitcoin and Gold sometimes reality is hard to understand.
\\ Signing off
The only option out of this mess is to QE > Infinity sadly this is pointing to extreme inflation / hyperinflation assets have barely deflated to levels needed. But the FED cannot and the ECB will not let big banks fail as its world ending.
Interesting times.