We have on deck the content of both the Fed and the Bank of England’s recent deliberations. These "minutes" are sometimes useful.
In the most general sense we can do well in making FI strategy if we remember that crowds demand a god. Whether an antebellum lynch mob or those who stormed the Bastille, or, that bunch waiting breathlessly for the next central bank minutes, all crowds look for leadership; they willingly surrender their individualism for the collective mind of the mob, that which was molded by the leadership of the daring.
This then explains the sometimes violent price change following the giving up of central bank policy intent, whether the Fed, Bk of Eng, ECB or Bk of Japan. Exploiting this behavior can provide a useful boost to bottom-line results.
Central bank leadership is mainly made up of economists. Economists understand how to analyze but not how to close a pattern for developments just ahead; most that try, forecast with their eyes squarely in the rear-view mirror. Since central bank policy making is birthed by just these types, we are gifted with a leg up, if we will only pause, and make it simple.
Robert Craven
In the most general sense we can do well in making FI strategy if we remember that crowds demand a god. Whether an antebellum lynch mob or those who stormed the Bastille, or, that bunch waiting breathlessly for the next central bank minutes, all crowds look for leadership; they willingly surrender their individualism for the collective mind of the mob, that which was molded by the leadership of the daring.
This then explains the sometimes violent price change following the giving up of central bank policy intent, whether the Fed, Bk of Eng, ECB or Bk of Japan. Exploiting this behavior can provide a useful boost to bottom-line results.
Central bank leadership is mainly made up of economists. Economists understand how to analyze but not how to close a pattern for developments just ahead; most that try, forecast with their eyes squarely in the rear-view mirror. Since central bank policy making is birthed by just these types, we are gifted with a leg up, if we will only pause, and make it simple.
Robert Craven
No comments:
Post a Comment