October 28, 2021
Rates continue moving higher…
I think it’s been decades since we have had as potentially as extreme a situation as we have now…vis a vis inflation…and a maybe $2 trillion spending package…an EXPANDING economy…and what I can only think is some degree of rampant speculation. What with SPAC’s, Crypto EVERYTHING, NFT’s, stocks flying, housing prices, commodity prices…How many clues do you need to see before you realize that, yes, “Rates NEED to go up. And don’t they need to start going up NOW?”
In fact, via the Eurodollar market, as I keep repeating, RATES ARE ALREADY ON THEIR WAY HIGHER…And in my opinion, per the extremes I see, it seems entirely possible that the rate increases we’re going to see will be far bigger…and more urgent…than ANYONE on Wall Street is currently expecting.
As I also keep reiterating, today’s rates are an aberration…produced by nothing else but the Pandemic…and within the next year or so, WILL be back at more “normal” levels…
The Covid inspired recession that the US economy suffered last year, and is now absolutely behind us, was the shortest we've had since the 1930's...And if you have any doubt that we are in a full blown recovery, I suggest you just hop on any interstate, or visit any shopping center... and take note of the fact that they are jam packed with semi's, cars and consumers. Then just take another look at the 60 year chart above and tell me that rates need to be kept low any longer.
The move is just getting started…
Here is an option I would recommend today…
If you agree with me, get in touch…It’s NOT too late…I might be dead wrong… but far from it I think.
All option prices in this newsletter include all fees and commissions. All charts, unless otherwise noted, are by Aspen Graphics and CRB.
The author of this piece currently trades for his own account and has a financial interest in the following derivative products mentioned within: Eurodollars