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Quantitative Tightening
The Market Bull 2019

00:00 / 2:06

The Market Bull – February 20, 2019

Volatile early trade sent the major averages into the final hour about even on little real news of significance. That said the Federal Open Market Committee meeting notes were subject to their usual dissection. Aside from the fact that tightening monetary policy and hiking interest rates in the face of record debt has proven a non-starter. Honestly what did they think? When you hook the populace and the economy on cheap debt taking away the punch bowl is a recipe for a recession, if not worse.

The Mortgage Bankers Association mortgage activity index bounced last week, snapping a string of declines with a 3.6% advance.

Purchase apps gained 1.7% while refis advanced 6.4%. The 30-year contract rate for a jumbo loan increased to 4.56%.

Agricultural; Prices gained for a 2nd month in December advancing 1.8%.

Prices increased notably for Commercial Vegetables, Feed Grains and Hay along with Poultry and Egg Prices. That said price declines remain fairly widespread for the series.

The latest Federal Open Market Committee Minutes or FOMC revels a growing chorus for suspending the balance sheet normalization process.

AKA QT or Quantitative Tightening and relaxing the pace of interest rate increases in the face of softening economic data.

Standard and Poors 500 Index closed at: 2,784.70 up 4.94
NASDAQ finished the day: 7,489.07 up 2.30
Gold ended trading at: $1,342.00 down $2.80


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