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MBS Week Ahead: Range Breakout In The Spotlight; Red Herrings

Posted To: MBS Commentary

Another week, another change to savor the scent of red herring in the air. Have you ever smelled a herring–let alone a red one? They’re oily little bait-fish (like a bigger anchovy) and once out of the ocean (or the bait freezer at your local tackle shop), they don’t smell great, whether dyed red or not. Something else that smells fishy are the news media’s versions of the fabled herring. The most recent example is the notion that developments relating to Syria are big, fundamental market movers. While I think we can give last week’s tweets and the weekend’s military actions some credit for having an effect on financial markets, the following charts suggest that the average financial news headline (e.g. “Treasury yields rise as Syria jitters fade”) needs to get…(read more)

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