In yesterday's morning note I shared the following from my recent entry to our internal research thread:
"...it is highly likely that when we see the slightest letup in Fed accommodation and/or the willingness of government to stimulate abates, all hell breaks loose... Which will in all likelihood be met -- at notably lower levels from here -- with the Fed literally, via a treasury SPV, buying equity ETFs; their foray into junk bonds is merely one step away."
Here's the headline from yesterday afternoon:
"Biden is considering Janet Yellen for Treasury Secretary"
Okay, sooooo....? Well, here's what I wrote back on February 17th:
"The icing on the cake came last week when ex-Fed chair Janet Yellen suggested that it might be a good idea for the Fed to buy corporate stocks and bonds during the next downturn."