The Fed and Lennar

Well, that was quite an afternoon!

So many trading opportunities to look into. It starts with the Gish Gallop that (1) inflation is still high, (2) the Fed controls inflation by raising the cost of borrowing, (3) when the Fed slows down the cuts in their target rate next year, that will cause mortgage rates to rise, (4) high mortgage rates are very important to demand for homeownership…

Every bit of that is misguided, and so every bit of it is a trading opportunity! And that was just the start of a busy afternoon.

The details below.