BANK OF JAPAN STEALTH INTERVENTION

WSJ teases a FED pivot

Review/Context

The main issue lately this year has been the global bond market. currencies and debt go hand and hand. so when one is debased, the other is affected when the biggest buyer of the debt leaves the market (central banks).

Today’s News

Japan stepped in to stop their currency from falling apart compared to the dollar. the operation is simple. they sell dollars, and buy yen. this is very temporary. the real solution will be when the fed (powell) coordinate with ALL central banks and make a changing decision on monetary policy.

we are not there yet.

Want to front run the fed?

If you want to be in the best position for a multi-year hold, you will have to be ready for the fundamental news…but there is a catch.

When they first cut rates, the markets panic. this is counterintuitive because you would think that everything is fine. rate cutting is actually negative, and has to be followed by a complete pivot.

Conclusion

Do not get in to early thinking that you beat everyone. Things t…