“Safety’ is a tricky and paradoxical concept. The safe assets are often the ones most people regard as hopelessly risky.”
– Jim Grant, acclaimed author of Grant’s Interest Rate Observer
POINTS TO PONDER
1. The chart shown below, courtesy of the financial blog Hedgopia, vividly illustrates the incongruity between US capacity utilization (essentially tracking how “maxed out” the economy is) and the Fed’s key overnight rate.