Markets coming off easy money highs This summer, as the FED tightens, there are signs that the markets are rolling over from their mountainous climb since Ben Helicopter Bernacke started with QE: low interest rates and bond buying, .back in 2008.
It's been an incredible climb. Now interest rates are up around 6% and the FED is selliing bonds, lowering bond values, raising longer term interest rates, in a finely tuned dance back to normality.
As the USA treasuries come down, raising interest rates out into the future depending on their maturity dates, the US dollar should soften.
Gold should become more valuable in US dollars as the US dollar index falls.
If we are really lucky, the markets will slowly decrease, the USD index will slowly decrease, so that the stocks such as krr won't get caught in a mountainous over-the-cliff collapse.
So, we rely on the FED to be an excellent dancer, anticipating its moves 6 to 12 months in advance. It's almost impossible. If J Powell pulls it off then he will be a hero, in my eyes. Look at the SPX, DOW, etc. since 2008.
Fred Astaire was able to lead Ginger Rogers to dance backwards. And now, J Powell, over to you.
cleareye.