There's an emergency meeting of the Fed today.
This afternoon, the Fed will attempt to get their act together prior to a special meeting with both President Obama and Vice-President Biden to discuss ways in which the Government might be able to stop the horriffic slide in the GDP forecast that's been going on for the past 30 days and is ACCELERATING to the downside at a rapid pace – as noted by the Atlanta Fed's updated GDP Now forecast, which has dropped all the way to 0.1% – almost as low as the interest rates meant to stimulate it.
That's down from 2.7% forecast just after Q4 earnings were announced because CEO after CEO said "Well, last year was tough, but things are looking better for 2016." Given the reality of the earnings reports, the market rightly corrected back to our 1,850 Must Hold Level (see our Big Chart) but then, a miracle occurred after the G7 meeting and all of our Central Banksters got EVEN MORE DOVEISH – to a level even doves who love to go to dove strip clubs for hot, doveish action thought was "a little bit extreme."
All this dovey action could even be forgivable – if it were having any sort of effect on the economy – but it's not. It is so not that, since the start of the year, earnings estimates for the S&P 500 have fallen 10% – even as the market has staged a 10% recovery off the lows.
Does the market know something we don't know? No, the market is an idiot – why would you listen to the market when it's been wrong so many times before? The market is nothing more than a tale, told by and idiot, full of sound and fury, signifying nothing. Shakespeare knew that 500 years ago – when will you catch on? No one knows what's going to happen (just ask Hugh Hendry, who manage(d) $1.5Bn) but that doesn't stop them from telling you what's going to happen – especially if you are willing to pay a fee for their no-better-than-a-coin-flip knowlege of the Future. Here's a chart of how many funds out of 2,862 beat the market average over the course…