Thursday, February 11, 2016

Another Leg Down

The markets continue to struggle here and it looks like they may well take another leg down.  The latest news is the prospect of negative rates in the U.S.  Just when we thought the Fed would act like a responsible adult they bring out this prospect.  It hasn't worked in Japan so why would it work here?  The news caused interest rates in the US to plummet and the markets to sell off.  If the Fed thinks things are so bad that we need to go negative on rates, then obviously the market thinks they know something that we don't!  We will send out our weekly market note tomorrow but cash remains a good place to be.