No more FED stimulus?

PUBLISHED: 05 Apr 2012 @ 20:02 | Comments (0) | More info about Clem Chambers

The markets don’t like the fact that the FED reckons it is not about to do anymore stimulus in addition to the Himalayan levels it has already created.

It could of course just be the beginning of the summer slump or, as I model it, yearly global wealth fund trade surplus rebalance.

In any event I’m taking the predicted kicking; if only we could time the market.

If this is just FED disappointment then the market will rally shortly, but if this is the summer slump come early we will be in for a month or two of this coupled with random explanations and panic.

I shall buy a fair amount of equity if this point arrives, as likely there will be a fat Obama rally in the autumn.

It is miserable however to watch ones profits sag, I’m long pound/euro and it is nice to see the Euro take its next step towards 1.3. I should short the yen, but Im reluctant to push my luck.

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