The FED is utterly confused right now. Less than 4 months ago, Chairman Powell told the world that America’s economy could withstand much higher interest rates, but the markets had other ideas.
When interest rates are artificially low, nothing can stand in the way of stocks, it appears.
There is so much data out there. Analysts from Bank of America to JP Morgan Chase are all pumping-out charts, presenting endless bits of information to investors, who, in turn, are basing decisions on these indicators.
Gold at $8/ounce is not a typo. It’s real. It is the result of a rare combination of events, which made investors commit gross miscalculations that led to enormous discrepancies between the value of assets and the price at which they are now being set.
Not one media outlet has focused on some truly disturbing words, uttered by FED Chairman, Jerome Powell, but he has made some comments, which have put into question the sanity of the central bankers at this stage of the cycle.