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Re: None

Sunday, 08/13/2017 10:53:11 AM

Sunday, August 13, 2017 10:53:11 AM

Post# of 4668
As Zero as Zero Can Be!

Movement towards JNK drives the market temperature higher with faster growth and higher inflation.

Movement towards IEF drives the market temperature lower with slower growth and lower inflation.

Movement towards LQD is an offset with faster growth and lower inflation resulting in zero.

Movement towards TIP is an offset with slower growth and higher inflation resulting in zero.

It's possible to have two zero temp reading that reflect wildly different market conditions...one with 100% TIPS = stagflation, and one with 100% LQD = disinflation.

But neither is the case today, with 50% of the Sea Wolf's credit assets in LQD and 50% in TIP.

Sort of like a solar eclipse it doesn't happen often and will of course disappear very soon...but which of the four directions will it take? Stay tuned.

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