A few more random items today.
The Fed announcement seemed to do a couple of things. I heard one pundit say this means this will not be the 1930's, that is now off the table. I hope that is true but from a stock market perspective that maybe kinda sorta already has happened; two 50% declines in one decade (I realize the first decline in GD 1.0 was much worse). Or maybe not.
Another byproduct of the announcement is that bond yields gyrated violently and the dollar tanked. I'll try to sort out the issuing of debt on one hand and buying it back on the other
Before the dollar started this long (what I think is a) counter-trend rally I was able to get something close to 20% from Norwegian sovereign debt. I believe this type opportunity will come around again. I am not worried about trying to time such a thing so I am not worried about when but I do believe this is an important concept.
That is not a call to lopside into that part of the market but some exposure could do some nice heavy lifting.
On the way home from the gym yesterday I caught some of Fast Money on Sirius. The gang sounded all fired up thanks to the rally currently underway. I put up a post yesterday about the SPX taking back 800 for a short while. After such a big move, but far from historic for bear market rallies, it makes sense for some folks to get excited and extrapolate further. I have been writing about a big rally for a while, my timing was probably wrong, and this might be happening now. We'll see. If we get to 900 on the SPX on this move I'm going to post something like "if you were scared to the point of being very upset at SPX 675, 900 is a pretty good time to sell a little something." A little something will not mean go 100% cash.
Did you see the Barack-etology segment on ESPN yesterday? About the only thing I like about him is that he is a sports fan. If you saw the segment you know he really knows his stuff about college basketball. He knew that Ty Lawson has a bum toe and the Oklahoma is not very deep among other things. He said he plans to sneak a peek at the games today and will watch the final game. Um I would think he might have a little more on his plate than to know that much about college hoops. I know what you're thinking, someone briefed him before filming. OK, if that is correct then I'll say "Um I would think he might have a little more on his plate than to spend the time on that kind of detailed briefing about college hoops. Do I have this wrong?