Wednesday, December 16, 2015

The Fed Can't Be The Cause And Solution To Brewing Crisis

The finger of blame, a predictable human response of confusion and fear, arrives as expected. Those foolish enough to believe the Fed can be both the cause and solution to the brewing economic/financial crisis spend very little time listening to the message of the market. The message from charts to the COT Matrix that allows investors to anticipate reduces the urge to point fingers.

Headline: Why the Fed is to blame for the junk bond shakeup – and why it could get worse

There’s at least one culprit in the junk bond market’s shakeup over the past few days: The Fed. So says Aaron Kohli, fixed-income strategist at BMO Capital Markets.

On Friday, Third Avenue Asset Management liquidated a fund that invested in illiquid high-yield fixed-income securities, commonly called “junk bonds.” That sent jitters throughout that market.



Market-driven money flow, trend, and intermarket analysis is provided by an Insights key.