We see the market mob is desperate for good news, hence the 180 in sentiment with today’s Sep Starts release. But Starts and Permits have gone nowhere since the 2013 taper temper tantrum and the resultant spike in rates. Plus wage growth is stagnant and credit tight so they aren’t going anywhere too quickly, too soon.
Recall the Fed miscommunication of June/19/2013. That was destructive and is the sort of foolishness which will repeat; and, this is why we noted yesterday that one wants to own FI volatility at every opportunity.
Recall the Fed miscommunication of June/19/2013. That was destructive and is the sort of foolishness which will repeat; and, this is why we noted yesterday that one wants to own FI volatility at every opportunity.
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