The start of another week is upon us, which means it is time for another excerpt from the latest letter to clients by One River Asset Management CIO Eric Peters, who today writes about last week’s Fed decision, the upcoming balance sheet unwind, the lack of inflation, and “disruptive” companies which may themselves soon be disrupted.
We will have more from today’s letter shortly, but for now here is Peters on a topic still fresh on everyone’s minds: the Fed’s latest rate hike decision, and what it really means:
‘You make poor people richer, or rich people poorer,’ bellowed Biggie Too, global chief strategist for one of those Too-Big to Fail affairs.
‘Ain’t no other way to reduce inequality.’ The Fed had just fired off another .25 caliber shot – Pop! ‘Brexit, Trump, Corbyn,’ barked Biggie. ‘They all promised to make the poor richer.’ But in no time, they’re cutting healthcare for the most vulnerable. Wage growth remains subdued. Stocks are at all-time highs. And poor people don’t own any.
‘So maybe those central bankers finally think it’s time to make the rich poorer.’
This post was published at Zero Hedge on Jun 18, 2017.