Below is a brief excerpt transcribed from today's edition of The Macro Show hosted by CEO Keith McCullough.
What could possibly go wrong?
The yield curve was absolutely pancaked following the Fed announcement. That wasn't even mentioned on CNBC or otherwise. I saw this morning that Bloomberg was running headlines about how PE Powell made everyone in the stock market happy yesterday.
Enough about stocks already.
- What is the 10-year yield doing?
- What is the Dollar doing?
- What is the curve doing?
Look at this huge move. On a one day basis, the +10 basis point spread you had between the 10-year and 2-year Treasury yield went to +2 basis points this morning and is still falling. I think the yield curve is going to invert again.
Why can’t the yield curve invert by 5 to 10 basis points, bank stocks go on sale, and then PE Powell goes dovish enough? So there’s the next part of the movie to keep in mind.
Just look at FedEx (FDX) or US Steel (X). These are companies that showed you economic reality continues to have to be reported. And, as I said, now that we're through the Fed meeting what really matters is earning season, and currently, for companies that have reported, they are certified train wrecks.
Be prepared.
