Tag Archives: Markets

Markets

Good News Is Now Bad News
Posted By Jim Bianco  |  Featured, Newsclips

For the time being, the labor market is giving the Fed the cover it needs to tighten financial conditions. This essentially means it is allowing stocks to falter in order to rein in demand and inflation. The payrolls report may have taken a back seat to inflation releases, but it will nonetheless play a part in determining how aggressively the Fed will proceed in its fight against inflation.... Read More

Markets

Explaining the Growth of the Fed’s Reverse Repo Facility
Posted By Jim Bianco  |  Featured, Newsclips

The Federal Reserve's reverse repo facility is now the parking spot for over $2 trillion. This acts as another version of tightening as the Fed is getting ready to start quantitative tightening.... Read More

Markets

Implied vs. Realized Volatility
Posted By Alex Malitas  |  Featured, Newsclips

The end of bear markets tend to exhibit heightened volatility and increased trading volumes. Despite significant selling pressure in recent weeks, volatility indices do not indicate panic. Given this, it is important to note the connection between implied and realized volatility in markets.... Read More

Markets

Are the Markets ‘Oversold’?
Posted By Jim Bianco  |  Featured, Newsclips

Bull markets rarely get overbought ... TINA, FOMO, and BTD. Bear markets are the opposite, they rarely get oversold, and "tradable lows" are all but impossible to measure with bull market metrics. ... Read More

Markets

Where Is the Fed Put?
Posted By Jim Bianco  |  Featured, Newsclips

The Fed put is not 100% dead, but taming inflation is now the Fed's priority. The stress levels at which they supported markets in the past are no longer as relevant.... Read More

Markets

Don’t Fight the Fed
Posted By Jim Bianco  |  Featured, Newsclips

The mix of fiscal and monetary stimulus in recent years created an extra 3% inflation in the U.S. The Fed intends to remove this excess stimulus by creating a reverse wealth effect.... Read More

Markets

Quantifying Liquidity Concerns
Posted By Alex Malitas  |  Featured, Newsclips

Last week we raised concerns that declining liquidity across markets could be a sign that the Fed is already close to breaking something. Ahead of the Fed's planned balance sheet runoff, they have warned that liquidity is indeed an issue.... Read More

Markets

Code Words to Look for at Today’s FOMC Meeting
Posted By Jim Bianco  |  Featured, Newsclips

When Powell described the labor market as being in good shape, he was saying it could handle aggressive rate hikes without massive job losses. Will he signal this again and set the stage for a 75 basis point hike in June?... Read More

Markets

What Might Break in the Markets?
Posted By Alex Malitas  |  Featured, Newsclips

If the Fed does not tighten far enough, they risk a period of longer and higher inflation. If the Fed raises rates at a strong pace, something in the market is likely to break. This is the catch-22 of the year 2022.... Read More