Nevertheless, the advice to watch the Fed’s response and hold your equity allocation looked good by June and great today. To me, 2020 financial markets are a product of the massive Fed action and the inexorable march toward Modern Monetary Theory. In this one, I talked about swapping from Treasuries to Inflation Protected Treasuries (TIPs). Great market history but the moment had mostly passed with the giant Fed action the week before. The pessimism in the futures market against bonds is still there but I am out of this trade.

Source: Forbes December 21, 2020 18:22 UTC