Wake up Call

It would seem that the convergence of events over the past few weeks have disrupted the Central Bank induced coma that have held sway over the markets for the past 24 months. While some will blame European woes or Ebola or ISIS or any other multitude of problems, the fact is that markets have been lulled/forced into a sense of false security over these many months, and as we all know when risk aversion happens it happens abruptly and quickly.What has been most unsettling, although not surprising, is how the markets have so quickly looked to Central Bankers for immediate relief, as if 6 years of unbridled stimulus was not enough. The Federal Reserve, starting with Greenspan, has consistently maintained an asymmetric monetary policy, choosing to cut rates at any sign of economic or market distress. It has always been our contention however that this asymmetric policy bent will eventually undermine the very credibility of Central Banking in general. It is also our strong belief that we are on the very cusp of a complete breakdown in  Central Bank credibility,  and when it comes investors will start examining the very basis for their capital allocation decisions. Get in front of these reallocations and Buy Stuff.