To fade the Fed has been a dangerous and expensive lesson. To assume the future of QE is solely at the mercy of the Fed may in fact be dangerous as well. I realize in theory the Fed is apolitical. They do their own thing with no input from either side of the aisle. But, here are a few thoughts to ponder regarding your trade.
Will $4 gas prices help Obama win another term?
Has the recent Egyptian and Tunisian crisis driven partially by rising food prices helped US foreign policy goals?
Will rising treasury yields help the "fiscal austerity" measures within the US?
Will rising input costs have no negative impact on corporate operating margins?
Is China, our second largest banker happy with the capital losses they are experiencing?
If you answered yes to any of these questions, you should simply stay long of stock. If you answered no then you, like me are one frustrated investor sitting on the sidelines.
Will $4 gas prices help Obama win another term?
Has the recent Egyptian and Tunisian crisis driven partially by rising food prices helped US foreign policy goals?
Will rising treasury yields help the "fiscal austerity" measures within the US?
Will rising input costs have no negative impact on corporate operating margins?
Is China, our second largest banker happy with the capital losses they are experiencing?
If you answered yes to any of these questions, you should simply stay long of stock. If you answered no then you, like me are one frustrated investor sitting on the sidelines.
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