Don’t Tell Me You Don’t Know Who Diana Nyad Is!
January 8, 2014
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She swam from Cuba to Florida. You didn’t hear about this? She was 64 years old when she did it last year…it was her 5th attempt. How do you not know her? Yesterday I wrote a post about Janet Yellen being confirmed as the next Fed Chair…she is the first woman to hold the position. I referenced Diana Nyad as an example of a strong woman…I got several emails giving me the impression people didn’t know who she was.
Diana Nyad is the definition of perseverance. She swam 28 miles around Manhattan for charity. If I tried to swim 1 mile I’d throw-up and then drown and then throw up again after already being dead. She is fun to watch break records and raise money for worthy causes, but she is even more fun to listen to because she is so strong-minded. Whenever I feel like tossing in the towel, like I did last night while I stayed awake with my sick son, I thought of Diana. Last night I didn’t sleep a wink…and I was okay with it. Hell, if Diana could swim from Cuba to Florida in jelly and shark infested waters, then what do I have to complain about?
Bonds Are Down; Fed Minutes From Dec Released Today, Initial Jobless Claims is Tomorrow & Payroll is on Friday. This morning the 30-year Fannie Mae bond is down about -25bps. As a result, rates are worse than yesterday.
The culprit is the ADP Employment report which indicated more new jobs created in December than anticipated. This report is interpreted by traders as strength for the economy…more new jobs means the economy is improving. Whenever traders feel the economy is improving they typically invest in stocks and pull money out of bonds to do so. When that happens rates worsen.
This afternoon the Fed releases their minutes from last month’s Fed meeting. If you recall, in this meeting they announced QE Tapering, a new policy of decreasing the amount of bonds the government buys. We all knew this was going to happen eventually, and quite frankly most believed it would’ve happened much sooner. But the detail in the minutes will shed some light into the discussions leading to the decision, and depending on how these notes are interpreted the market might shift once again. Although I’m in the car all day, I’ll do my best to keep you apprised…