So Russia invades Ukraine and stocks go UP.
Why? Because the hedge funds that rule the market care about one thing and one thing only, keeping the flow of free money coming from the Federal Reserve at any cost.
Until this morning, the Fed was going to have to start raising interest rates, because inflation is out of control. But the Fed doesn’t want to raise rates. It is desperate not to raise rates. It should have started almost a year ago, and it looked for any excuse to delay - a delay that has led to the current inflation crisis.
Now the Vladiator has given America’s Finest Central Bank a new excuse to do nothing about inflation, and doing nothing is what this Fed does best.
It goes almost without saying this will end very badly; Vlad’s Ukrainian Vacation cannot help but worsen inflation by driving up energy prices. In a couple of months the headline US annual inflation rate could be approaching 10% - devastating for lower-income Americans.
But that’s tomorrow’s problem. The Fed made the hedge funds happy today. And today is what counts!