Republic Risk: PCE On Tap

It's going to be very interesting over the next 60 days with U.S. liquidity under pressure.

The market is up this morning ahead of the PCE inflation report, which could help determine when the Fed will cut rates.

This comes as the yen continues its plummet to record lows against the dollar following the U.S. presidential debate. Liquidity in Treasury bonds is at lows not seen in over a decade, while the iShares 20+ Year Bond ETF (TLT) saw its biggest single-day inflow in history on Monday, adding $2.7 billion as traders start to bet on lower interest rates.

Equity Storm Watch Is GREEN on the S&P 500 and RED on the Russell 2000

Our Model Portfolio

Not much happened on Thursday as the market seemingly held its breath awaiting this morning’s PCE number. Most of our positions pulled back slightly, but for the most part is was a pretty boring day for everything we own.