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We have to start to "go to school" on these "monetary tightening" induced sell offs which I think this pattern is probably starting here...
have to watch how far they go down to start to develop a "buy the dips" strategy for when the Fed starts to raise interest rates looks like sometime next year...
Right now it is just "less QE" (which even this is better than "more QE") and we see an equity sell off start already after the press release/press conference....
So here we go they will cut the QE back eventually to 0 and then start with the interest rate raises 6 months after that or so...
We may only get a few % sell off on these announcements for now with any "tightening" now only taking the form of "less QE" and then perhaps the sell offs will be a bit bigger when they actually start to increase the rates we'll see....
The big money moves are by portfolio managers and they follow each other into the currently favorite asset classes, seeking alpha. So the question is where would the money from equity and tsys migrate, and who is going to be taking the other side of the trades?
6 comments:
Simple. "Considerable time" is roughly equal to "Extended period of time"
Longer than "soon".
Sooner or later?
Whenever I want to ..... ps, I will email you guys on WS well in advance.
Cheers !
We have to start to "go to school" on these "monetary tightening" induced sell offs which I think this pattern is probably starting here...
have to watch how far they go down to start to develop a "buy the dips" strategy for when the Fed starts to raise interest
rates looks like sometime next year...
Right now it is just "less QE" (which even this is better than "more QE") and we see an equity sell off start already after the
press release/press conference....
So here we go they will cut the QE back eventually to 0 and then start with the interest rate raises 6 months after that or so...
We may only get a few % sell off on these announcements for now with any "tightening" now only taking the form of "less QE"
and then perhaps the sell offs will be a bit bigger when they actually start to increase the rates we'll see....
rsp,
The big money moves are by portfolio managers and they follow each other into the currently favorite asset classes, seeking alpha. So the question is where would the money from equity and tsys migrate, and who is going to be taking the other side of the trades?
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