After today's jobs report the prospect for a rate hike in 2016 remain dismal at best.
September rate hike odds have dropped to 25%, December to 55%, and odds are those odds will drop to even further as 2016 winds down.
It's an hour until Yellen and all through the market, banks had lots of cash but no where to park it. Yields were too low, too stock prices at record highs, this has to fall apart at some point, why should I buy?
The market is safe, they said with a grin Lehman is gone and Enron is a has been. So hold up your nose, and nod your big head, just buy up those stocks, volatility is dead.
We had a trifecta yesterday for the stock market. Unlike a horse race trifecta where there is a 1st, 2nd, and 3rd place, a stock market trifecta is one where everyone finishes in first place. Everyone wins! Right?
Isn't that the world we live in. Everyone wins. There is no second place, and most assuredly no last place. Our society has fostered a mentality that failure is impossible. Win or lose you win, winning is the only outcome. A medal for everyone. And in such a world reality becomes impossible to stomach. Central Banks around the World are in the business of doing the same thing. Failure is not an option.