So … that may be it for the little correction.
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“U.S. central bankers are currently debating whether it should confine its controversial tool of bond buying to purely emergency situations, or if it should turn to that tool more regularly,” said Daly.
You already know how we feel about central banks. It just seems to be getting worse and worse. We were in front of thinking Federal Reserve Chairman Jerome Powell was just like the rest, but this is now getting ridiculous. First, he does the 180 and now he floats this. This stuff is not released by accident, but instead with markets in mind.
We came off our bearish stance in early January for just one reason: the about face by Powell. And now, here’s more fuel for an already lit market while Europe and Japan head into recession and China heads south.
Fundamentally, you are seeing numbers that we thought would show up. Europe, if not in recession, is quite close. Japan is in contraction. China? Who knows what China's numbers are, but let’s just say if things were great, they would not be easing like former Fed Chief Ben Bernanke and adding a whopping $83 billion to the system in past weeks.