9/27 Clock is Ticking On A Recession

Interesting article that we have to take seriously. Stock market is booming again today. Fawk, what a party.But as someone who has touched the hot stove,I’m always looking at risk. Last time I took a rat fucking I was way too heavy in financial stocks. Why? Because I was making money with them. Until the hammer came down. Not doing that again. That stung.

Return of QE, near zero rates. Sounds impossible right now but things change fast. Isn’t that what got us into the “sticky” inflation territory.

The important question: How do we make more money ? Start shorting the high flying stocks?

“The first interest rate cut by the Federal Reserve signals a U.S. recession is imminent and a dramatic drop in financial markets could once again force the U.S. central bank to come to the rescue by buying bonds, said tail-risk hedge fund Universa.”

finance.yahoo.com

The first interest rate cut by the Federal Reserve signals a U.S. recession is imminent and a dramatic drop in financial markets could once again force the U.S. central bank to come to the rescue by buying bonds, said tail-risk hedge fund Universa. The Fed said last week it started cutting rates to recalibrate monetary policy and to maintain strength in the labor market. But for Mark Spitznagel, chief investment officer and founder of Universa, this was the start of an aggressive reduction in interest rates, as a highly indebted U.S. economy, which has so far defied expectations, will soon crack under the weight of interest rates still at historical highs.