Republic Risk: Why You Should Ignore Jerome Powell Today...

It's pretty fascinating that we're still listening to Powell, when the real drivers of the market are Janet Yellen, shadow banks, and the looming stimulus boom from China.

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

We’ve been in the Green and thankfully avoided the chaos of the Japan bond earthquake this month.

But I’ve noted I expect a little turbulence heading into the election, followed by a monetary groundswell.

Treasury Secretary Janet Yellen has hundreds of billions of dollars left to deploy into the financial system, and the markets will likely experience another post-election rally. 

We remain heavily bullish due to monetary inflation heading into 2025.

All that said - the media will play up Jerome Powell and ignore the broader influences of the markets right now. In a world where liquidity dominates, the global shadow banking system has injected about $6 trillion in new liquidity since January 2023, while central banks are around $1 trillion. This groundswell of liquidity has enabled markets to continue their bullish ascent higher despite the Fed’s supposed Quantitative Tightening program and higher interest rates. 

I …