"Every bull market ends with a Fed policy mistake"
EVNN NOTE: You may have heard it before; all economic disasters are made
by governments attemps to control the economy
Market Watch Published: Dec 19, 2018 11:20 a.m. ET
What are the strategist saying?
”Every bull market ends with a Fed policy mistake—it’s just the way it is.
Evidence is mounting that we may be on the cusp of that policy mistake, as
it appears the Fed has overestimated the strength of the economy amidst
several headwinds,” Tom Essaye, president of the Sevens Report wrote in a
Wednesday note to clients.
“To be clear, current economic data remains, generally, solid. But the
marginal direction of change has turned decidedly lower,” he wrote.
He went on to argue that the major unknown variable is whether or not the
Fed will stick to its policy of gauging the economy using hard, but
backward-looking, data on economic and job growth, or will “recognize that,
over the past few months, a serious economic headwind has kicked up.”
Those barriers are evidenced by slowing growth abroad, declining inflation
expectations and oil prices that have fallen more than 30% over the past