The Fed has given the market its next QE. It took the market a few minutes to digest the lack of steak on the plate. As it were. The Market fell hard as the news was first heard, and the market parced it incorrectly.
It was the lack of a flashy steak meal, but instead the Fed had done something else entirely different. The market exploded upward once it understood the implications of the new QE program. It will be interesting to see how the market handles the implications.
The new QE is sublte. Its not flashy, and no one has to fear the press getting it right or for that matter wrong. You see, the Fed didn’t deliver the steak, instead what it did is pick up the tab, as it walked out of the room.
Ya, its that simple. Money is free now. Ponder that. So, what kind of Lobster or Champagne do you want tonight? Its on the FED or said better, its on you. You see, the game plan is now brutally clear. Adjust your portfolio and prepare for Change. Its arrived.
Its QE ~
or as David “the future bond king” Schawel calls it. Its a Stealth QE. It is a way to move the MBS portfolio held at the FED in to newly printed US T purchases on the far end of the curve. The old QE Lite will be in effect far into the future.