2015.03.19 The Bubba Show

Bubba comments on the state of the equity markets. He talks about the “race to the bottom” in currencies. He states that the market has only so much space and when that space gets crowded someone will get bumped out. He notes that not everyone can win the race to the bottom. He discusses the effect on the current contango is having in the Oil market. He concludes this segment by warning that something will happen in the Oil market that will drive out participants.

Jim Lurio comments that the Fed promised to have interest rates controlled by the economic data but there is no sign of inflation, so why raise rates now? Bubba agrees with him. Jim comments on the unintended consequences of the rising dollar. If the Fed cuts rates it could cause U.S. exporters to lose their edge entirely and may cause the U.S. to stop growth. Bubba and Jim agree the Fed seems to be in a bind.

Bubba plays the tape of his BNN piece on Tuesday. Bubba comments that the markets have been in a strange pattern the past few weeks. They have been “gapping” overnight and then they are very stable during the day. He talks about large rally in the Bond market that may be the key number going into the Fed report. He states that no matter what happens that there will be selloff after the report hits the street.

Bubba comments that except for the extremely wealthy that there has been no recovery. The middle class has not benefited from the Fed’s policies and if they raise rates at this time it will probably hurt the employment picture. Bubba closes out the interview by noting that the Equity markets are only a small part of the overall financial picture.