Why is it that Mondays have to come once a week? Just ask anyone and he or she will tell you that Mondays are blue, lacking energy, and just plain old blah. So, can someone out there get it changed that Mondays only come, say, once per month, or, maybe, here is an idea, not at all.
As to the market, since it is Monday, I am feeling blue, lacking energy, and just plain old blah, so I will go down the road of the ridiculous, to the obvious, and finish with the serious.
First, the ridiculous …
- The head of euro zone finance ministers urged Greece on Monday to “stop wasting time” and buckle down to serious talks and implementation of a reform program to secure urgently needed fresh funds from its international creditors.
I get it that the workings of Greece are important to Greece, but does anyone else notice that the Greek demand for austerity relief is getting ridiculous? Again, what choice do they have? If they don’t agree to the EU terms, later this month, they go bankrupt. Seriously?
Now, as to the obvious …
- Mohamed El-Erian, chief economic adviser at Allianz SE, said Monday that it was “pretty obvious” that the Federal Reserve would hike rates this year after Friday’s strong U.S. jobs report for February.
Okay, this guy is highly regarded out there in the Financial industry. He makes millions per year, no doubt, and he influences markets around the world when he speaks. So, what exactly is he telling us? Is he suggesting that the Fed might not actually raise rates this year after telling us over and over and over again that they would? Seriously?
As to the serious …
- The dollar fell from multi-year highs on Monday as investors took profits from gains built on a view that last week’s strong U.S. employment report helped cement expectations the Federal Reserve will raise U.S. interest rates this year.
The dollar is still pretty high, up around 97 today and adding a bit more as of this morning. More importantly, the fact that the market is up today with this nonsense about the Fed raising rates this year posing as “news” suggests the market is finally ready to cast off its addiction to the breathless media’s insistence that this nonsense about the Fed raising rates this year is “news.”
Yes, Mr. El-Erian, it is “‘pretty obvious’ the Federal Reserve would hike rates this year after Friday’s strong U.S. jobs report for February.”
The market today is up, so far, pulling back some of the steep losses on Friday, but, no matter, it is all about the economic fundamentals, and, yes, the breathless media is correct – the Fed will raise rates this year because the economic fundamentals are good. As Inspector Clouseau famously and comically said in his thick French accent, “What do you think I have been saying?”
Trade in the day; invest in your life …
