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Wkly Update thru Mar 1st 2019; Shootout at OK Coral

Hey Folks, markets are really off to a very strong start in 2019.

This week’s Sound bites:

The markets are coming off its best first two month of the Year since 1991; but of course this is also coming off the worst December since 1931…as a result of the bounce as we kick off 2019, the FED Fund Futures is only pricing in a rate hike by this Dec of only 2% essentially all but taking away higher interest rate projections for 2019…for 2019 the S&P is up 11.08% marking the best start since 1991 and this is also off the worst Dec since 1931 with a drop of 9.18%…yet despite the rally the S&P finished just 1.6% above where it ended on Nov 30th and off 4.75% from the highs made on Sept 17th…we also saw real GDP come in for Q4 at 2.6% while full-year 2018 GDP coming in at 2.9% giving the US its best annual GDP performance for over a decade…

And amid great fanfare the US National Debt hit $22 Trillion in Feb. exceeding 2018’s $20.5 Trillion in Debt, yet interest rates are still near historic lows of 2.85% with inflation staying under 2% and the jobless rate around 4% while we’re also seeing Global Debt reaching over $50 Trillion…yet we are also seeing over $11 Trillion of Global Debt still below 0% interest rates…

We now have the entire theory of Modern Monetary methods of manipulated interest rates, levitated asset values and the supposed necessity of a 2% inflation rate under discussion…

Get my take on the Weekly Round-Up:

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