“Setting Ourselves Up For A Policy Error” – Stocks Soar As Rate-Hikes Pulled Forward

“Setting Ourselves Up For A Policy Error” – Stocks Soar As Rate-Hikes Pulled Forward

A July 2022 rate-hike is now a lock busting the “dovish taper” narrative.

The dollar plunged and then rallied back to unchanged…

Bitcoin tumbled and then ramped back also…

Stocks are exploding higher despite the hawkish shift in expectations…

The yield curve has steepened notably (back to unchanged on the day) with the long-end yields up 6bps…But even that is rolling over.

Finally, Scott Minerd, global chief investment officer at Guggenheim, said in a Wednesday interview on Bloomberg TV: “We clearly are setting ourselves up for a policy error,”

 

“There is no way that we have engaged in the scale of asset purchases in the pandemic where there’s going to be a policy which ultimately is going to be perfect and not cause some sort of interruption to asset prices or something else that would be destabilizing. I think that would be in the realm of practically miraculous.”

Tyler Durden
Wed, 11/03/2021 – 14:20

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