Bank Of America Explains What Federer's Victory Means For Fed Monetary Policy

Tyler Durden's picture

On Sunday, Roger Federer did what many in recent years said was impossible, when he won his record, 8th Wimbledon title, defeating Croatia's Cilic in straight sets.

Away from the court, the victory may be an ominous sign for EM bears. As Bloomberg's Marc Cudmore said earlier this week, when he explained why he more focused on this Fed rather than the one run by Janet Yellen, "The Fed" has won seven of the past 14 championships. In every year he’s been victorious, both the MSCI EM Currency Index and the MSCI EM Equity Index have gained. By contrast, in five of the seven years he hasn’t finished triumphant, both those indexes have dropped.

That did not mark the end of "Fed vs Fed" spurious correlation.

As Bank of America's Chris Flanagan writes in a note on Sunday, "curious as it may be, Federer's trajectories have mirrored those of the FOMC's rate path; steadily rising in the mid-2000s, pausing since the crisis, and gradually normalizing back over the last two years."

Apparently with no more fundamental analysis left, BofA - bored and fascinated by tennis instead - writes that "this coincidence is likely to run into September... setting Federer up to reclaim his title, King of Queens, at Arthur Ashe Stadium for the sixth time."

BofA's conclusion: "Should this historic coincidence come to pass, it yet again clears the path for another historic shift in monetary policy, for the FOMC to start balance sheet reduction in September."

And just like that, algos will now buy stocks on every flashing red Federer headline.

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Fartboxbuffet's picture

Lol where i put my crazy pills

Croesus's picture

"Federer up to reclaim his title, 'King of Queens', at Arthur Ashe Stadium"

I thought the King of Queens was possible Senatorial candidate Caitlynn Jenner.

What the hell did the Kartrashians do to that guy?

any_mouse's picture

"Caitlyn" is another project of the group that is destroying Western culture.

A Hollywood production in the real world. ("Reel" vs. "Real")

Distorting reality.

Creating Chaos.

Wood_Vlogs's picture

I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do.

The Ram's picture

WTF. It’s late or I had too much to drink or maybe I landed in another universe.

SubjectivObject's picture

Congratulations to Roger, the US Fed, not so much.

Rick Cerone's picture

it means absolutely nothing

Rick Cerone's picture

OMG! Bitcoin is under $2,000!!!!!!

Sell Sell Sell

runningman18's picture

That's a similar sentiment to what the Bitcoin cult was telling us a couple months ago - "Bitcoin is over $2000!  Buy Buy Buy!"  Bitcoin is tulips. 

Silver Savior's picture

I never really bothered with bitcoin. I do the alt coins. Trying to spend all that money on just one coin is crazy. It is useful though when I transfer funds from one exchange to another and when buying silver. I might buy some if it gets to $100. I prefer Lite Coin, XRP, Stellar, and Ethereum. Oh yeah and Bitcoin is slow as fuck.

jamesmmu's picture
New World Order One World Currency Starting In Africa? – Testing?

order66's picture

What little confidence people had in the people running BofA just vanished.

Mon T's picture

Bit of a stretch.

Soul Glow's picture

Fuck all analysis.  Just fucking drink beer and stack.

Silver Savior's picture

I will give them something to analyze. lol.

Batman11's picture

It is a pity Ben Bernanke didn’t study the cause of the Great Depression rather than the Great Depression itself.

The 1920s roared with debt based consumption and debt based speculation before everything tipped over into the Great Depression.

1929 and 2008 stick out like sore thumbs; bank credit going into financial speculation and stocks (1929) or real estate (2008).

Leveraged financial speculation with bank credit.

If he’d studied the bit before 1929, rather than the bit after 1929, all this unpleasantness could have been avoided.

any_mouse's picture

FED actions before caused the crash. The deep wealthy were out of the market beforehand.

FED actions during delayed the recovery. The deep wealthy were not yet done stealing the nation at rock bottom prices.

FDR's Gold Confiscation affected private individual Americans. It did not apply to institutions that dealt commercially in Gold. The mine owners and the banking houses. Gold was legally moved out of the USA to the City of London.

After Gold was revalued from $20 to $35 the Gold was brought back to the USA for instant profit by Government decree.

Chicago pales in comparison with Washington, DC and the FED.

FredGSanford.'s picture

Roger Federer. GOAT.

pawn's picture

Oh yeah top 20 females @ LPGA U S open K O R EA N. How is that currency doing? O H a Trump golf course new Jersey. 

stacking12321's picture

Omg, Korean women, unbeatable on the court or in bed!

hardest-working women there are.

Silver Savior's picture

Fuck Bank of America. Always a line of people out the door and only one or two tellers. But they do have that service rep asking everyone in line why they are waiting in line then she tells you to wait in line. 

I am hearing so many you tube stories of them putting holds on big transactions and stuff and it's weirding me out. I am going to a community bank. This whole financial system fucking sucks.