You Will Lose Betting Against Governments
Big moves happening in the solar sector today. I would not chase those fuckers after such a run higher. Although I liked the airlines, I’ve convinced myself that crude is going to bounce this week. As such, I eliminated my exposure to the airlines and added to my oil longs. The QIWI position is nothing more than a play off Russia. Given my bullish position in crude, I figure Russia will bounce with stronger oil prices. Plus anyway, QIWI is trading at a 50% discount to where it was trading last year, in terms of PE and P/S ratios.See also MacroBusiness:
Everyone expected Yellen to disappoint today. I think the speech went well and there is no fucking way the Fed tightens now, as the CRB index hits 1996 lows. I’ll say it again and to the point: THE FED IS NOT GOING TO HIKE INTEREST RATES, NOT NOW, NOT EVER, ESPECIALLY WHEN WE ARE FIGHTING DEFLATION.
What if they did hike rates?...MORE
Who's Afraid of Janet Yellen?
Precisely nobody, with markets bid across the board as she warned in Congress:
The FOMC’s assessment that it can be patient in beginning to normalize policy means that the Committee considers it unlikely that economic conditions will warrant an increase in the target range for the federal funds rate for at least the next couple of FOMC meetings. If economic conditions continue to improve, as the Committee anticipates, the Committee will at some point begin considering an increase in the target range for the federal funds rate on a meeting-by-meeting basis. Before then, the Committee will change its forward guidance. However, it is important to emphasize that a modification of the forward guidance should not be read as indicating that the Committee will necessarily increase the target range in a couple of meetings. Instead the modification should be understood as reflecting the Committee’s judgment that conditions have improved to the point where it will soon be the case that a change in the target range could be warranted at any meeting....MORE
