Be fearful when others are greedy and greedy when others are fearful. -Warren Buffett Buy when there's blood in the streets, even if the blood is your own. -Nathan Rothschild Rothschild is said to have made a fortune buying assets in the wake of the Battle of Waterloo so in his case, he meant this literally. Another quote attributed [...]
Last week started with investors focused on Jerome Powell's testimony before Congress and any hints about future monetary policy. During the course of two days of testimony, which was deemed more hawkish than expected, the market priced in another rate hike and pushed out the possibility of a rate cut all the way to January 2024. The week ended with [...]
Investors crave certainty. They want to know that there are definitive signals for them to follow as they adjust their investments to fit the current market and economy. They want to know that A leads to B leads to C. Tea leaf readers are always in high demand on Wall Street and they continue to find employment despite their almost [...]
Dimon says brace for U.S. economic 'hurricane' due to inflation "It's a hurricane," Dimon told a banking conference, adding that the current situation is unprecedented. "Right now, it's kind of sunny, things are doing fine. Everyone thinks the Fed can handle this. That hurricane is right out there down the road coming our way. We just don't know if it's [...]
The first half of 2021 was inundated with government helicopters, more QE’s, and then CPI’s put up with guarantees the “inflation” was going to continue for a long time. Jamie Dimon, JP Morgan’s often hapless CEO, proudly declared US Treasuries beyond the touch of any 10-foot pole. With the economy on fire, he “reasoned”, who would ever want safe and [...]
JP Morgan’s Jamie Dimon hasn’t produced an enviable track record opining on inflationary potential. He’s forever deeply entrenched in the inflation camp, and because he sits atop the corporate structure of one of the world’s biggest and most well-known banks, it does seem reasonable at first how his opinion on monetary matters is taken very seriously – despite repeatedly missing [...]
On August 1, 2018, the Treasury Department announced that it was introducing the 8-week T-bill. With deficits up and going higher due mostly to December 2017’s Tax Cut and Jobs Act (TCJA), the government was becoming creative in how it would deal with its trickier funding needs. Not only the new bill maturity, note auctions were going to be bumped [...]
Never attribute to malice that which is adequately explained by stupidity. In our specific case here, never attribute to deviousness what is plainly incompetent Economists. Jamie Dimon, the CEO of JP Morgan, though he works atop one of the world’s biggest banking money dealers he got there by being a trained Economist. To bring this home, in March 2008, just [...]
That’s the thing about these eurodollar cycles; they aren’t short. We’re conditioned on the belief that the business cycle is, or at least the recession piece. According to convention, the economy peaks and within a relatively short period of time it falls apart. The shock and its very immediate aftermath. The lengths of time involved here in the post-crisis era [...]
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