Linda Raschke Blog

"When Markets Collide"

Mohamed El-Erian

 

As traders, we are supposed to trade what we see and the why part of the trade usually comes after the fact.  This book is a great read to explain not only the strategic, structural, and tactical drivers for recent moves, but aslo how these drivers are going to continue to impact markets going forward.

 

Rates are starting to pick up steam in a serious way to the upside.  November Fed Funds are now pricing in over 50% chance of .75  hike by end of October.  Two weeks ago, they were pricing in only a .25 hike.  Vietnam, China, India.....starting to see many countries hiking rates - this global trend appears to be in its early stages.  

 

Once again, markets have been a case of sell in May, walk away......

 

Read this book!!!   I feel like every day in these markets for me is a long journey towards getting a PhD!   Think it will take me a lifetime to understand everything that is unfolding...