Central bank accommodation and monetary looseness might be coming to an end. After six years of virtually nil fed funds rate, the Fed under Yellen and now under Powell, is starting an upward cycle that to me might go faster than the market thinks.

With the US economy buoyant, unemployment at all-time low and markets breaking records, the recent tax legislation signed by President Trump back in December seems like the over-heating might actually become real. The Fed is surely looking at this trends and might consider increasing the pace of rates increases in 2018.

My take: start taking down those long US equities…


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