The Iceman Goeth, Robots Cometh Ep. 229

Published: Feb. 23, 2017, 1:30 a.m.

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\\n \\t* The Dow finished with yet another gain today
\\n \\t* We closed at 20,775.60
\\n \\t* I\'ve been told that this is the longest consecutive winning streak for the Dow Jones since 1987
\\n \\t* Of course, we all remember how that streak came to a crashing end in October with the 1987 stock market crash
\\n \\t* We\'ll see if the market has better luck this time around
\\n \\t* We got the FOMC minutes released earlier today
\\n \\t* I think they were interpreted as being hawkish; remember, this is all on a relative scale, they\'re all doves now
\\n \\t* It is simply degrees of dovishness, there are no actual hawks on the FOMC or on any central bank
\\n \\t* The question is, "Who is more dovish and how dovish can you be?"
\\n \\t* But there were some statements that caused the markets to think, "Hey, maybe a rate hike is coming."
\\n \\t* Because I think the members said it would be appropriate to raise rates sometime soon
\\n \\t* What is sometime soon?
\\n \\t* Is that March, or is that April, May or June?
\\n \\t* That\'s still soon, in the scheme of things
\\n \\t* If you look at how slowly the Fed has been moving
\\n \\t* Glacial speed, when it comes to raising rates
\\n \\t* Soon can certainly be a few months from now
\\n \\t* It doesn\'t necessarily mean that it is going to be March
\\n \\t* They could have said March - "It might be appropriate to raise rates in March"
\\n \\t* They didn\'t say March - they just said soon
\\n \\t* Nobody really knows what soon is
\\n \\t* They did comment that they thought the markets might interpret gradual rate increases as meaning only 1 or 2 rate hikes a year
\\n \\t* And they were troubled by that, because maybe by saying that, by gradual, they mean 3 a year
\\n \\t* Not 1 or 2
\\n \\t* I heard some people saying,
\\n \\t* "Maybe the Fed is not going to go slowly."
\\n \\t* Even if they do 3 - we\'re still talking very gradual rate hikes, especially if you put it in context of how low rates are right now and how high inflation is already
\\n \\t* I keep hearing these comments from Fed officials
\\n \\t* They\'re doing interviews and they\'re saying, "Yes, we\'re making progress; we\'re moving slowly toward our goal of 2% inflation."
\\n \\t* 2% inflation!\\xa0 They left that in the dust
\\n \\t* \\xa0The last number we got in January showed a year over year increase of 2.5%
\\n \\t* So why are they saying they\'re making progress toward getting to 2% when they\'ve already zoomed past it
\\n \\t* They\'re looking at it now in the rear view mirror
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