Central banks are like Willy Wonka to markets offering golden tickets.
We have the People’s Bank of China wildly expanding their repo purchases to stimulate their economy and have just announced massive investments.
Then we have Trump administration officials \considering measures to roll back tariffs on Chinese products in order to calm financial markets, the Wall Street Journal reported, a report the Treasury Department quickly denied.
Then we have The Fed taking further rate hikes off the table. It sure looks like it!
Then there is the January effect (not the January Jones effect) where stocks decline at the end of the year only to rise at the beginning of the next year.
My bet is on Jerome Powell, The Fed’s own Willy Wonka spreading golden tickets to Wall Street.