“Why are central banks cutting rates while yields are going up? How is this possible?” This is the question many people are asking themselves at the moment. Surprisingly, those experiencing the highest degree of confusion and bewilderment appear to be institutional investors rather than retail investors. The reason is that...| JustDario
Two weeks ago, traders assigned a 60% probability to a FED emergency rate cut, potentially up to 75 basis points. Let me stress this point: an emergency rate cut isn’t an ordinary one. What was the “emergency” that required such a swift and powerful action from the FED two weeks...| JustDario
First of all, let’s do a quick recap of how we got here: At this point, something very important happens. On the 30th of July, right after US stocks opened for cash trading, someone very big was clearly being margin called and liquidated as I warned in this post here...| JustDario
The FED just delivered an oversized cut with the S&P500 trading at all-time highs, signalling that, contrary to their mandate, their focus isn’t the economy anymore but to deliver the political agenda of the US Administration in charge. That the FED is now clearly solely focused on defending the stock...| JustDario
FED AND BOJ WILL DO EVERYTHING THEY CAN THIS WEEK TO SAVE THE STOCKS BUBBLE ONCE AGAIN| JustDario
The U.S. Treasury yield curve is one of the most important indicators in global financial markets, serving as a reflection of investors’ sentiment, economic outlook, and central bank policy. By plotting the yields of government bonds across different maturities, the yield curve provides insight into the direction of interest rates,...| JustDario
Last week I wrote the provocative, but substantiated, “THIS IS NOT 1987, 2000, 2008 OR 2020, BUT A WHOLE NEW MARKET MONSTER” with the main goal of bringing to everyone’s attention how the current financial market is presented with many “unknown unknowns.” Today it’s worth looking a little deeper in...| JustDario
On Monday last week in my preview of FOMC and BOJ policy meetings “FED AND BOJ WILL DO EVERYTHING THEY CAN THIS WEEK TO SAVE THE STOCKS BUBBLE ONCE AGAIN” I assumed the BOJ would be cognizant of the overall situation, hence I saw zero possibilities they would have hiked...| JustDario
