Dear Fed Chair: Your Timing Isn’t Great

On TOP of comments yesterday (omicron vs seasonality), it is very notable that interest rates are sharply lower today, despite the fact that the Chairman Powell says that tapering is likely sooner rather than later, which “should’ve” pushed interest rates higher. The net result: investors flocking to bonds away from stocks and that is overwhelming the seasonal effect or the speculation that omicron symptoms are less severe, etc (I am not an immunologist).

The point: you are looking for NET clues on volatile days, we have ours here. We actually saw it yesterday: stocks higher, but bonds were not notably lower. There is a reason for my mantra: stocks for show, bonds for dough. The larger market is telling you that uncertainty is runnin’ the joint, and you can read old emails over the past couple of weeks, about the fact that I have noted that bond volatility vs equity movements was a bit strange. Uncertainty running the joint, ‘til proven otherwise.