Twist Translation = Fed buying short term vol, selling long term volA comment commonly heard from the market is “don’t fight the fed.” PFG plans not too, but we will join them in using this event to sell long term volatility. This “twist” function, Japan playbook or whatever it is being called is yet another support for decreasing long term volatility and keep the stock market bumping around the lows with no real legs as the financials/government/individuals are stuck in the “asset leverage trap.”
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