Gold is still in a trading range.
Money is still growing.
Bonds have broken support and must be sold.
TACTICS
Continue to shrink the book, and put all new business into Money Market Arbitrage.
When making long term loans, make sure of both spread and credit quality.
Don't expect the Fed to lower short-term rates any time soon.
We expected the Fed to consider easing sometime this Summer, but with bond prices falling, there is little chance the Fed will lower the funds target.
STRATEGY
Warn the Board. Something is driving long rates up.
