Talk about a complete change of tune: in October the Fed said we’re a “long way from normal” in terms of rates, suggesting that they were preparing to raise interest rates. But then, after the stock market dropped 20%, there was talk of zero rate hikes or even rate cuts this year. So who’s really in control here: the Fed, or the stock market?
The S&P 500 is tied for its 2nd best performance since 1990. Only 1991’s January/February trading action has been better.
The S&P 500 is up four weeks in a row – just like it was at the beginning of 2018.
Right now, everyone is holding tight. Whichever way you look at it, there’s widespread confusion, and when people are indecisive, they resort to cash.
Today’s letter is incredibly important, as it deals with how, despite the $21T in Federal debt, the immense wealth gap between rich and poor, the visible political divide, and the long-term mismanagement of the fiat monetary system, we still haven’t seen it crack wide-open.