Good Morning on this best day of the week Wednesday,
No economic news today, zip, zero, non. That said, all markets getting hurt on yesterday’s Fed President Brainard’s comments about tightening quickly.. Equities down, bond yields higher yet (10-yr at 2.63%), and crypto down. Even oil is down. The only thing holding flat is gold which has ben falling as well lately. I am not sure what to tell you other than play defense here. At 11am Pacific we do get the minutes of the last Fed meeting. Maybe some glimmer of hope there but if not, we are literally catching a falling knife at this point. The details of the Fed tightening could go either way but regardless of the verbiage, there will be damage done to the economy. Make no mistakes, the Fed is pulling the emergency break today (or putting us on notice today for it to start shortly). Zero growth environment is not good for anything other than curbing inflation which begs the question of whether inflation matters as much when people aren’t working and can’t afford to pay their bills. I don’t want to make it sound quite so dire, but I am a bit more than curious about this.. borderline nervous.
Moving on… talking about inventory. Below is some recent data from the MLS. The orange line is available inventory since the beginning of the year in months… rut row, here we go… still.
Fed minutes at 11… stay alert.
Please remain safe and healthy.