One of the greats in the business said despite today’s decision, Fed is still uber dovish and that will continue to impact markets.
September 22 (King World News) – Peter Boockvar: The FOMC statement was pretty dull with wording on the economy not much different than seen in the July one. Instead of announcing a soon to start taper today, they kicked it to the next meeting by saying “If progress continues broadly as expected, the Committee judges that a moderation in the pace of asset purchases may soon be warranted.”
They remain of the belief that the spike in inflation is temporary by saying “Inflation is elevated, largely reflecting transitory factors.” Where they repeated “The path of the economy continues to depend on the course of the virus”, I would argue vehemently that it should have read “The path of the economy continues to depend on the course of inflation” because that is clearly in my mind the number one economic problem right now, not Covid. Just ask FedEx.
With the dots, six members see one hike in 2022 and three see two…
After predicting back in March that core PCE would be 2.2% in 2021, only to raise that to 3% in June and 3.7% today, their ‘transitory factors’ excuse continues on. They of course back up this belief with the magical forecast that 2022 PCE will slow to 2.3%, although that is up from 2.1% at the June meeting.
Their unemployment rate forecast is 4.8% vs 4.5% in June and 4.5% in March because of a trim to 2021 GDP estimate. They kept their 3.8% forecast for 2022.
Bottom line, while a taper announcement, maybe, is coming in November, that they didn’t do so today just reflects a still uber dovish committee. A 6 month core CPI run rate of 6.4%, a record amount of job openings with shortages leading to wage increases and the continued market distortions of $1.44 Trillion of annualized QE, let alone still zero rates, just proves this committee and Jay Powell remain afraid of their own shadow. The only thing they are going to learn from now until November 2/3 when they next meet is whether the debt ceiling will be raised and I’d say the odds of that are 100%. Thus why continue to wait to taper?
Also of importance…
A Very Big Story
Eric King: “Michael, your company has become a very big story. What is happening that is so special?”
First Time In Modern History
Michael Konnert: “I think the reason the story is so exciting is that we’ve consolidated, for the first time in modern history, this massive silver district. And we’ve drilled some of the highest grade silver in the last decade in the Napoleon Zone. But what really excites me about what we have here is that it lights up with electro magnetic so we have a way to target the highest grade areas of the vein. We are going to fly the entire property toward the end of the year and I suspect we are going to find many, many more high-grade veins across the district.
High-Grade Silver Growth Potential Is Staggering
We have operating permitted production infrastructure, a 500 tonne per day mill, we have tailings, and we have power. For the market cap of Vizsla, if you look at where we can go with the resource that we’re going to be putting out, how rapidly we can move from that resource into production, that is an extremely powerful dynamic for significant upside in our share price from current levels. And when you look at similar companies that have been in our position have achieved — high-grade silver, pathway to production, multi-billion dollar market caps — you see what’s possible here. The district we have is very large. This isn’t a few thousand hectares of land, this is an entire district that spans for 14 kilometers. It fits over the island of Manhattan. So the propensity for this district to grow is massive and we just keep on finding more high-grade mineralization. Vizsla Silver Corp, symbol VZLA in Canada and VIZSF in the US.
***To listen to the timely audio interview about the gold and silver smash and more CLICK HERE OR ON THE IMAGE BELOW.
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