Insiders are buying, but is a Canadian lost decade ahead?

The Fed is no doubt aware of these concerns by now. Insiders seem to be betting that the Fed will at least provide some policy certainty so that investors can plan accordingly. That alone may help to stabilize stocks over the next year. One way or the other, the Fed is going to have to get off the fence and signal what is more important: getting to 2% inflation or deflating asset bubbles. How stocks respond will likely depend on the path that the Fed chooses. While Canada has rolled the dice by risking a real estate bubble (see oil patch for a post-bubble scenario), due to tightening financial conditions America faces a deflationary scare as seen in collapsing inflation expectations. Consequently, the Fed has no easy choices at this point based on its current thinking. For example, Minneapolis Fed President Narayana Kocherlakota has noted that raising rates risks diminishing the Fed's inflation targeting credibility. On the other hand, even the Fed knows that keeping rates at zero risks promoting more asset bubbles.
 

We see at least a 50% likelihood that the Fed will choose in favour of risking more bubbles. Indeed, in a speech last week, San Francisco Fed President John C. Williams made the case that it is too expensive to pop housing bubbles given the assumed negative impact on growth. If we are wrong and the Fed does move ahead with a rate hike this year, it will need to provide a new narrative as to why this is consistent with its inflation objective.

jordan Sneakers | Air Jordan 1 Retro High OG 'University Blue' — Ietp