Join our Larry McDonald on CNBC’s Halftime Report Friday at 12:30pm
“Central banks around the world are having more and more influence on the markets. Many people are trading off of anticipated policy moves and the crowded trades are even more profound. However, the sentiment of investors making bets on the “great divergence” has reached a fever pitch. Fed funds futures are expecting at 78% of a 25bps rate hike, far too many people are on one side of the boat. We believe credit risk will veto the Fed policy path next year. We do not see rate hikes coming in 2016. We implore you to buy the gold miners GDX and long U.S. Treasury bonds.”
The Bear Traps Report, December 9, 2015
Chances of a July Rate Cut from the Bank of EnglandGet on the Bear Traps Report Today, click here
June 24: 41%
June 1: 9%
Bank of England Governor Mark Carney responded to Britain’s decision to quit the European Union with a 250 billion-pound ($343 billion) pledge of funds to support the banking system. He also said policy makers will “assess economic conditions and will consider any additional policy responses.” That means more action may be forthcoming if market turmoil spills over into the economy, with investors increasing bets on an interest-rate cut by next month. – BNGet on the Bear Traps Report Today, click here
A year ago today, 88% of Wall St was calling for 5 Fed Rate Hikes (2015 into 16) before:
-A possible China currency devaluation
The Blind Squirrel
Wall St’s cluelessness over risk management and how it relates to Fed policy never ceases to amaze us. They’re the gang that can’t shoot straight.
Central Bankers have been bamboozling Wall St. for far too long.
A Meeting of the Gods
The world’s monetary Gods, our saviors, will meet at the Bank of International Settlements meeting in Basel over the weekend. We have a list of 3 trades focused on their next move, just click on the green link below.
As you can see above, the explosion in their balance sheets have had the end result of bringing the global economy to the brink of recession.
We must have a plan for their next move, get on our Bear Traps Report:Get on the Bear Traps Report Today, click here