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Mixed signals from Fed speakers and an update on the Odd Couple trade

Big Al
August 16, 2016

Editor of the National Investor Chris Temple joins us today to discuss the mixed signals from the Fed Presidents Bill Dudley and John Williams. Their comments are causing some of the movements today but the fact remains that the global environment is weak and that is hurting the US.

It is noteworthy that as the US markets continue to hit new highs, US treasuries and gold (the Odd Couple trade as titled by Chris) has been a very good investment. Why treasuries and gold are seeing money roll in extends beyond the simple reason of investors looking for protection from a stock market crash.

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Discussion
7 Comments
    Aug 16, 2016 16:42 AM

    I think energy is anything but getting weaker. I have never seen more people on the road, jobs wanted signs, and businesses generally doing well. I think we are on the cusp of greater inflation because we can afford to have deflation. Plus, there are too many people that are like you, who think oil is going to go lower. This trade reminds me of gold and gold miners in January.

      Aug 16, 2016 16:43 AM

      correction- we cannot afford to have deflation

      Aug 17, 2016 17:41 AM

      I generally agree. . .it makes more sense that prices of most things will continue to melt higher over time as they have been doing. I merely quibble with the timing now where oil is concerned, believing that this rally is questionable.

    Aug 16, 2016 16:28 AM

    Excellent comments. Always appreciate Chris’ explanations. He would have made a great teacher IMO. Here’s another reason why we could be approaching a top in the conventionals: http://www.marketwatch.com/story/stock-buybacks-tumble-to-4-year-lows-2016-08-16 Also, James Flannigan is suggesting the oil market still has some run left to the upside, perhaps before some of the fundamentals of supply take hold.

      Aug 16, 2016 16:46 AM

      Ditto. Mr. T rocks!

        Aug 17, 2016 17:59 AM

        +1

    Aug 16, 2016 16:34 AM

    It is highly risky to short oil unless it is done in the 50’s. I picked up some Exxon last week on a dip at about 14 cents from the bottom. Bought back Shell and BP too recently.