Ever feel like you're going crazy? Ever feel like things just don't make sense? It's almost like the mental cliffs are so unstable that they just might collapse. Be careful at the edge of sanity.
The markets don't make any sense anymore. There isn't any real price discovery because the supply and demand aren't real. The bond market is breaking down. There hasn't been enough liquidity, so for the first time in 11 years the Fed is adding liquidity by buying up bonds in the overnight market. It's been three days in a row and there doesn't seem to be an indication of when it might be able to stop.
The Fed lowered rates 25 points at its meeting on Wednesday even though the market is supposedly strong. The stock market didn't jump as much as one could expect from increased ability to borrow. It's yet another sign that the market is saturated with debt and there isn't demand for more debt, even if it is at a lower rate.
Precious metals haven't jumped as much as one could expect from all the uncertainty in the world. The prices also haven't dropped as much as one could expect given the Fed rate cut. It's still a very strange time in the financial arena.
It seems the bubbles are getting bigger. It's anyone's guess when they might pop, but it's important to be prepared. Are you ready?
Not investment advice. Do your own research.
@themanwithnoname