What they forgot is that the Greeks also have a god named Khaos, the god of chaos. You would think after 5 years of it (2019-2023), we would have learned that volatility is the new normal. From a pandemic, to supply shortages, to a major land war in Europe, to inflation, to treasury markets stuck rolling over debt at the short end because fewer want their long-term debt.
Here we are in December, right before the holidays and Khaos has given us more gifts. Greeks bearing gifts is rarely a good sign but we opened the box and we got the Panama Canal becoming a mud puddle due to drought, flip-flop-wearing rebels taking potshots at ships in the Red Sea, Russians advancing in the snow going West, and the Middle East again embroiled in another war.
But the Bulls saw a prophecy with the clarity of Tasseomancy reading Turkish coffee cups with 2 members voting for no cuts to one voting for 6 and everyone else all over the place. So here we are with ships going around the capes like Magellan and Jacob Le Maire, the Treasury hoping the next note or bond auction works out, repo hiccups, bank losses growing, more debt coming to maturity, and households putting more on layaway all while markets hit new highs.
Somewhere above the clouds on Mount Olympus, the gods are having a good laugh watching us claiming we have seen the future from a single dot plot reading.
#fed #federalreserve #rates #yields #dollar #commodities #markets #homebuying #homeselling #dmvrealestate #marylandrealestate #redsea #panamacanal #middleeastconflict #dotplot
