Post Hoc Fallacy
On Tuesday, at the precise moment Federal Reserve Chairman Jay Powell commenced delivering his semiannual monetary policy report to the House Financial Services Committee, something unpleasant happened. The Dow Jones Industrial Average (DJIA) didn’t go up. Rather, it went down.
Were the DJIA operating within the framework of a free capital market it would be normal for the index to go both up and down. But remember, the U.S. stock market is hardly a free market. Not when it is under the influence of extreme Fed intervention.
When the Fed speaks, the DJIA should go up. At least, that is the opinion of President Trump. And as Powell spoke, the Real Donald Trump took to Twitter and delivered his play-by-play assessment:
“When Jerome Powell startedRead More »