WTI Crude Up 6.33%

Fuel for more Fed Rate Hikes?

As of this writing, WTI Crude is up 6.33%. The Fed rule book says combat inflation to a target of 2% and keep unemployment at low levels. So is the rise to WTI Crude a sign we will see a rise in the Fed Funds rate?

With the Fed offering higher rates vs bank deposit via its Reverse Repo Window, money is flowing out of bank deposits to Money Market accounts. Essentially suffocating small to mid size banks. Couple this with the Yield Curve inverting further to -0.59bps, we should expect more bank insolvency in the near future.

Futures are down pre-market after a move higher last week to close out the month of March. Yet nothing really has changed. Window dressing for the mutual and hedge funds, if you ask me.

Portfolio Allocation Mix

Risk managing your portfolio in the environment we are in is new territory for many. It hasn’t happened to my recollection that we have had a 1928 and early 1980’ Federal Reserve action happen simultaneously as we are seeing now. This is why my portfolio allocation has…