Today Market August 2022

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Most don’t talk about the balance sheet reduction. We’re going to see rates going higher even without rate increases due to the balance sheet reduction.

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Correct.

Taylor rules( not Taylor series) works perfectly and there were some thesis about it.

Few things are clearly working in financial markets

  1. Taylor rules
  2. Yield curve inversion
  3. Kelly Criterion for multi-millionaires and billionaires for asset allocation

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FED follows this modified rules

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Screen Shot 2022-08-30 at 2.10.07 PM

:+1: