Bad economic news is great news for stocks and bonds.
We are back to the hazy, crazy daze of QE.
As Mario Draghi and the ECB is set to announce the beginning of talking about the beginning of bond buying, the markets are gun ho for bad news.
The IMF and the World Bank on the heels of the economic confab in Davos slashed their global growth forecasts, sending equities up 1.5% across the globe.
The euro is trading below $1.16 on the dollar and German 10-yr may have a 0.03 handle before the US opens.
All the while gold and crude in dollar denominations have made steady climbs, with gold climbing over $60 an ounce in the last six trading days.
So you have to laugh when the Fed puts out a press release through its mouthpiece Jon Hilsenrath that they will stop being “patience” and raise rates at the June meeting.
As I’ve said, there is no way a June rate rise is in the cards, jawboning be damn.