In this week’s Off the Cuff with Mish & Chris podcast, Chris and Mish tackle:
The Market: What’s the future of the recent rally? If it’s nearing its end, what’s more probable – a consolidation or a jolt to the downside?
Recession/Recovery: Which are we in? The media is full of conflicting messages – what’s the truth here?
Housing: The numbers continue to look grim. Is there any light at the end of this tunnel for homeowners? Or for the banks holding morgage debt? (spoiler alert: Don’t get your hopes up.)
Jackson Hole: What are the Fed’s options here (not many) and which one(s) are they likely to implement next?
In short, Chris and Mish see an increasing number of concerning data that indicate the markets are in for a tough ride this fall.
Add to that the ‘leadership’ demonstrated by the Fed and Washington and it’s difficult to find inspiration. The news from Jackson Hole seems like a stalling tactic to cover the fact that the Fed has yet to determine what, if anything, it can do that will improve the fundamentals. Both Chris and Mish are confident that a new QE-type of program will be announced soon, but it will likely be a “sell the news” event for those holding paper assets.