DIAMOND HANDS

At first glance, there is no common ground between the Fed and the cohort of retail investors who have undertaken a short squeeze on the GameStop share. Both are, however, nice examples of diamond hands, this confidence in the ability to stay the course set, whatever the short-term ups and downs. Thus, despite recent figures shattering overly optimistic Q4 2020 expectations, rising concern on the vaccination trajectory and a slowdown in activity and employment, the Fed has decided to leave the pace of its purchases unchanged. The mechanics of the Fed's balance sheet de facto equates this decision to a pre-tapering, despite the macroeconomic uncertainties ahead. May the future favor those who have the courage of their convictions.