SpellBound

Recent comments by the Bank for International Settlements (BIS) that “Global Markets are under the spell of Central Banks and their unprecedented monetary policy settings” echoed what we and others have been saying for the past 3 years. Not only have they been under a spell, they have been put into a rate induced coma. However, as we have stated repeatedly, the aftershocks and consequences that will result once the spell is broken will be dramatic. It would appear however that neither the BOJ or the Federal Reserve are paying any attention to such talk, as both seem intent on achieving goals that are either ever-shifting or incongruous. Concurrent with these comments, was an article in the WSJ regarding the extensive security detail afforded The Fed Chairwoman. Not to be flippant, but we cannot understand why such security is directed at someone whose main activity these days is maintaing the status quo (doing nothing). Don’t be hypnotized, Buy Stuff.