FOMC part 2: FED did panic...... They are now doing 'open ended' bond buying

Video

Options Lab webinar: Review of gold, euro and oil option markets

Nick Howard of Bantix Technologies returns to OptionsLab, joining Saxo Bank's product manager for futures and listed options Georgio Stoev, to preview key markets ahead of the German election.

1d Commodities webinar: Impact of current macro themes — #SaxoStrats

3

2
1d From the Floor: Increasingly 'lame duck' Fed kept policy steady

0

3
1d Why I'm looking to sell gold: O'Hare

4

1

Squawk / 13 September 2012 at 17:08 GMT

Steen Jakobsen

Chief Economist & CIO / Saxo Bank

Denmark

FOMC part 2: FED did panic......

They are now doing 'open ended' bond buying - no finite time or amount...hence this will go down as QE Extreme.

I remain of the view this is final phase...

I'm long stocks, gold, short us dollars next 24-48 hours but ..on the anniversary for LEHMAN... tonight could be the day where FED did too much.

Low yield and monetary policy stopped having an impact two years ago, tonight could be the night where after the rally low rates no longer impact stock and risky asset - the only cheap asset right now is: money ...every time this has been the case in history it has ended in bubble and tears.

My expectations for FOMC: http://www.tradingfloor.com/posts/fomc-will-do-more-not-less-211139245

Trade of the day for FOMC: http://www.tradingfloor.com/posts/trade-of-the-day-fomc-position---bought-gold-oct-2012-at-1825-319161083

Safe travels,

Steen

5y

bvlaerhoven

totally agree. This is the bridge too far. Maybe even the FED themselves know/acknowledge as 40bio monthly is not the blowoff amount they could have done.

5y

bvlaerhoven

On the other hand, buying MBS is the better way to do this. Best of the worst?

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Tradingfloor.com permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Tradingfloor.com and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Tradingfloor.com is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Tradingfloor.com or as a result of the use of the Tradingfloor.com. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through Tradingfloor.com your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. Tradingfloor.com does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of ourtrading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer