Wednesday, August 26, 2015

Bipolar Markets and the Probability of Interest Rate Hikes...

The market has gone crazy... The largest one-day reversal since October 2008 occurred yesterday after the Dow was up more than 400 points in the morning, but closed down more than 200 points. The recent sell off and excess volatility can only be explained by one thing... The market doesn't want the Fed to raise interest rates so it went bipolar weeks before the next FOMC meeting. (Kidding!) But, like I mentioned on Monday, I'm not going to hold my breath waiting for a rate hike in September. Neither is the President of the New York Fed.

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