7/17/2018 – A positive day with the Dow Jones up 55 points (+0.22%) and the Nasdaq up 49 points (+0.63%) 

Here is why remaining market bears should rejoice and have a bit of a party despite some indices hitting new all time highs.

You see, the FED and its Chairman Jerome Powell are making a colossal policy mistake. Not only is QT is in full swing, Mr. Powell is just months away from inverting the yield curve.

Powell backs more rate hikes as economy growing ‘considerably stronger’

The U.S. economy is running at a fast enough pace to justify continued interest rate increases, Federal Reserve Chairman Jerome Powell said Tuesday.

“Overall, we see the risk of the economy unexpectedly weakening as roughly balanced with the possibility of the economy growing faster than we currently anticipate,” Powell said.

“The unemployment rate is low and expected to fall further. Americans who want jobs have a good chance of finding them,” he added.

I am too lazy to look it up, but the thinking above might as well be copy/pasted from 2000 and 2007 tops.

We spoke about this before Imminent Yield Curve Inversion Points To Massive Losses Ahead Here is the chart…..

The FED is once again mistaking debt driven speculative mania with true economic growth. Today’s yield curve is already as flat as a poor’s man pancake and it is already a little beside the point if it actually inverts or not. The damage is already spreading throughout financial firms and the economy.

Than again, what do I know, according to the bulls this time is different. 

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