When even Bloomberg jokes about the market's levitation...
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You know the central planners have gone too far...
Last week, markets were under a lot of pressure; over the weekend, the good old plunge protection team, with some new teammates, got back to work; we had Fischer’s comments, bunch of other doves also came out, we are concerned about rest of world, if economy slows, we might raise rates slower; lo and behold, we find stocks bouncing very nicely into the U.S. opening, Bloomberg’s Richard Breslow writes.
Stocks once again ahead of bonds...
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Driven by AUDJPY
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One of the problems is that policy makers are truly data dependent and are playing it by ear; in the “old” normal world, the market would start to price things as it thought appropriate; now markets are in “we can’t fight City Hall” mode, can’t fight sov wealth funds; the CBs are the most aggressive investors right now, for them to complain about markets, is somewhat disingenuous and depressing.
Source: Richard Breslow via Bloomberg