Fed announces non-QE, QE

Discussion in 'The Okie Corral' started by WeeWilly, Oct 8, 2019.

  1. WeeWilly

    WeeWilly

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    I just saw a news flash the Fed will start buying short duration Treasuries (T-Bills) in an effort to support the overnight funding infrastructure.

    They say it isn’t to help the yield curve inversion and not meant to affect current monetary policy.

    Of course, it will be taken as welcome news by the equity market pundits, as they will be able to point to the steepening yield curve as proof positive of a healthy bond market. ;)

    One of these days, the Fed is going to lose their credibility, Katy bar the door when that day comes.
     
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  2. willie_pete

    willie_pete NRA Life Member

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    “ I know you think you understand what you thought I said but I'm not sure you realize that what you heard is not what I meant”

    ― Alan Greenspan




    Fed Speak

    :rolleyes:
     

  3. czsmithGT

    czsmithGT

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    "One of these days" is here.
     
  4. WeeWilly

    WeeWilly

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    My barometer for when that day is here, will be more than a percentage point or two in asset values. ;)
     
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  5. catman71

    catman71 Spewer of TROOF

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    How does one prepare for this reckoning?

    invest in a time share perhaps?
     
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  6. GlockerBill

    GlockerBill

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    Now that is some funny sheett
     
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  7. G33

    G33 Frisky! CLM Millennium Member

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    Shell game.
    :)
     
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  8. willie_pete

    willie_pete NRA Life Member

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    The dealer always wins.


    ;)
     
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  9. Z71bill

    Z71bill

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    I was watching Powell dance live

    He would say one thing market would spike higher - say something else it would drop like a rock.

    But Donald had the last word when he slammed China.

    Stock market is no longer even investable-

    Hard for me to see why - when there are 1.5 trillion in excess reserves in the banking system- that it is still short of reserves.

    Look out below

    upload_2019-10-8_15-22-33.png
     
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  10. Z71bill

    Z71bill

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  11. rj1939

    rj1939

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    The only ones that believe in the Fed, are people who's paycheck depends on them believing.
     
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  12. rj1939

    rj1939

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    Wake me when the helicopters take off.
     
  13. LEO/Dad

    LEO/Dad Navy Veteran

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    Don’t you guys mess with anything. Our September ML statements had some real nice gains. Moderate risk.
     
  14. Z71bill

    Z71bill

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    What is moderate risk?

    Not trying to be an ass - but I really don't know - I can't think of anything that would be a moderate risk right now.
     
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  15. mdlott

    mdlott

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    So. Weewilly and Z71Bill. If you're 45, behind the curve, and have mostly mutual funds, what do you do? My Edward Jones guy says keep investing. I'm thinking top heavy, convert to cash and hang out.

    Can't really afford any more haircuts. I bought RE in 05.
     
  16. willie_pete

    willie_pete NRA Life Member

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    I'm sitting on a lot of cash now; got stopped out of a lot of my positions.

    I'm thinking I will be on the sidelines until after the election when things settle down ( if they ever do ).
     
  17. WeeWilly

    WeeWilly

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    Everyone has to make up their own minds with regard to risk tolerance, investment horizons, etc.

    A proper asset allocation generally would depend greatly on when you think you might start using the capital for lifestyle, versus accumulating. In addition, things like personal risk tolerance (how you sleep at night in dodgey times, etc.
     
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  18. Rotn1

    Rotn1

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    61 Retired

    38% Equities
    47% Bonds
    15% Cash

    Will go with more higher dividend stocks when I rotate through the cash
     
  19. LEO/Dad

    LEO/Dad Navy Veteran

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    It is a balance percent that they use for your investments; equities, fixed income, cash and alternative investments.

    73 retired
    Equity 59.51 percent
    Fixed Income 33.89
    Cash 6.60
     
    Last edited: Oct 8, 2019
  20. Z71bill

    Z71bill

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    The FED and gov will take what ever action they think will be required - even at the risk of destroying the country - trying to prevent the next crash -

    Giving everyone $1K a month - then $1,000 a week - sounds crazy - and it will not work - but it will be tried - they can always come up with a reason and most people are so stupid all they will see is free money - so it is all good.

    At that point it will not really matter - this could be next year or in 5 years but when that program starts rolling it is the sign we are close to the end as we know it.

    I just hope some other country tries maximum stupid first and fails fast - so then maybe we will not go there - but then socialism has failed miserably many times through history and about half the people are starting to think is it a good system.
     
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