Tuesday is the 40 year anniversary of the assassination attempt on President Reagan. I remember this because it was on my 7th birthday. I of course feel terrible for my selfish feelings of 'my day' being ruined by all the adults only wanting to watch news coverage of this and
I've enjoyed the celebrations the past few weeks about how far we've come in the past year. I'm as excited as everyone about our ability to emerge from the pandemic. So many positive things happened in the past year. We of course have had many negative things happen.
The problem
Stocks are back to all-time highs despite a brief "inflation" scare a couple of weeks back that knocked 10% off the NASDAQ and significantly more than that off the more popular momentum stocks. Most Americans will be once again receiving some nice payments from the Federal Government and the expectation
"The Fed controls short-term rates. The free market controls long-term rates. If the free market decides rates should be higher, they will go higher."
This is something I've said often since 2008. Most people believe the Fed can do whatever they want with interest rates. That is simply not true.
It's been exactly a year since investors woke up to the possibility that COVID19 could disrupt the "rocket ship" economy most believed we were experiencing. Investors saw little chance for anything to interrupt it. Readers of this blog and investors with SEM would have known the economy was artificially juiced
