Fed Has "No Way Out": 7 Reasons Fed Will Print Trillions
Friend of Fringe Finance Lawrence Lepard released his most recent investor letter this week.
Friend of Fringe Finance Lawrence Lepard released his most recent investor letter this week.
I believe Larry to truly be one of the muted voices that the investing community would be better off considering. He gets little coverage in the mainstream media, which, in my opinion, makes him someone worth listening to twice as closely.
Larry was kind enough to allow me to share his thoughts heading into Q4 2023. The letter has been edited ever-so-slightly for formatting, grammar and visuals.
This is part 2 of his letter, part 1 was published yesterday.
TOP SIGNS OF RIVETS POPPING
In the spirit of David Letterman, below we highlight the Top “7” signs of further fissures in the economy that will ultimately force the Fed’s hand to re-stimulate. Or said another way, we think we are heading toward a Sovereign Credit Event. That is, the bond market is telling us “NO MAS” and will not absorb these debts at today’s rates. Rates will have to be much higher to attract bids.
(1) 10 Year UST
The yield on the 10 year US Treasury bond continues to spike out – going from 3.5% in June to over 4.99% in mid-October. Note the increase since the Fed tightening cycle began. The US 10 Year has not been at this level since 2007. Over 16 years ago and right before the GFC.