The Cocaine High Is Coming To An End, Plus A Note On The Gold Market

Thursday, September 21, 2017
By Paul Martin
September 20, 2017

On the heels of today’s ridiculous propaganda coming out of the Federal Reserve about how it is going to reduce its balance sheet, it appears the cocaine high is coming to an end. This is what it will mean for investors.

The cocaine high is coming to an end
On the heels of the Fed release, Peter Boockvar issued this warning: I reiterate my view that just as QE created much ebullience in markets, QT will do the opposite. While it won’t be symmetrical because of the gradual start to QT, everyone has to remember that the 3rd mandate and purpose of QE was higher stock prices. Thus, I believe it’s delusional to think there won’t be a negative impact on asset prices as the reverse happens…

To hike or not to hike…
Boockvar had this to say regarding the odds of a December Fed rate hike: As for the December rate hike, it is happening if the S&P 500 handles QT in a smooth way in coming months. Thus, we either rally ourselves into another rate hike or sell off away from one.

The Rest…HERE

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