What does a communicative Fed and not wanting to surprise anybody do except raise the VIX?

Jun 22, 2022
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What does a communicative Fed and not wanting to surprise anybody do except raise the VIX? - Jim Paulsen

He comes from the 70s where the idea was the opposite.

Every meeting the VIX goes up and then when the meeting's over it does a little better.

Is it helpful in helping investors decide what's going to happen?

Paulsen said it might be better watching the Fed's boss, ie What's going on in the economy. And then the next boss is the bond market. They're both saying the Fed better not overdo the tightening.

Relatedly, Tony Pasquariello said. "The moment the Fed says 'We're done,' or 'What's priced into the script is as far as we'll go,' the market's going to rally back, and will ease financial conditions in so doing. And that's the kind of cat and mouse game between the Fed and financial markets."
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<div><b>What does a communicative Fed and not wanting to surprise anybody do except raise the VIX? - Jim Paulsen</b></div><div><br></div><div>He comes from the 70s where the idea was the opposite. <br></div><div><br></div><div>Every meeting the VIX goes up and then when the meeting's over it does a little better. <br></div><div> </div><div>Is it helpful in helping investors decide what's going to happen?<br><br>Paulsen said it might be better watching the Fed's boss, ie What's going on in the economy. And then the next boss is the bond market. They're both saying the Fed better not overdo the tightening. <br></div><div> </div><div>Relatedly, Tony Pasquariello said. "The moment the Fed says 'We're done,' or 'What's priced into the script is as far as we'll go,' the market's going to rally back, and will ease financial conditions in so doing. And that's the kind of cat and mouse game between the Fed and financial markets."<br></div>
What does a communicative Fed and not wanting to surprise anybody do except raise the VIX? - Jim Paulsen

He comes from the 70s where the idea was the opposite.

Every meeting the VIX goes up and then when the meeting's over it does a little better.

Is it helpful in helping investors decide what's going to happen?

Paulsen said it might be better watching the Fed's boss, ie What's going on in the economy. And then the next boss is the bond market. They're both saying the Fed better not overdo the tightening.

Relatedly, Tony Pasquariello said. "The moment the Fed says 'We're done,' or 'What's priced into the script is as far as we'll go,' the market's going to rally back, and will ease financial conditions in so doing. And that's the kind of cat and mouse game between the Fed and financial markets."

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