Santelli: "When The Fed Comes Up With The True Value Of Interest Rates, We'll Get The True Value Of Stocks"

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RICK SANTELLI, CNBC: I couldn't decide what to talk about today. I had 12 topics, 2 1/2 minutes, I can't cover 12, but I'm going to. I'm just going to make comments about each of them, something new. One thing I've heard from many people and many people not only on the floor but on our channel today, hey, the Fed needs to like make an announcement, they need to shore up the markets. My question is, why? Haven't we already been through what happens when they shore up markets? There's been talk for QE 4, yeah, let's try that again so we can go through the withdrawal again. Doesn't seem to make much sense.

What about this is all going to affect the economy at-large? Well, when we were moving up and many were saying that the fundamentals were mismatched with the price level of the equity markets, there was very little trickle up. I suspect that it will be very much balanced in terms of not much true economic trickle down. What we will find is a way to calibrate the true value of stocks when the Fed comes up with the true value of interest rates and we'll get the true value of stocks.

Further, many think that central banks around the globe are going to start selling like China, like Japan because they need to. Look at what investors have done, like Art Cashin says, you don't sell what you want to, you sell what you can. On this one, though, I think I'd put an asterisk. I don't think foreign central banks are going to sell. Such a wonderful trade that they've been holding in terms of treasuries. Why is there so much in the way of stock moves that dwarf the bitty moves in treasury? And this is pretty evident.

Look at the ten-year -- 2.03. Where did it settle Friday? 2.04. 30-year bond at 274, suddenly, 272, -- it's actually up two basis points. Well, because even though the debate has been raging on for years as to what market is right, but we know which market is right now. Treasuries have handicapped pretty much the long end to global growth and the reason the moves aren't bigger is because everybody is catching up to the reality treasuries have been pricing all along. What about can't raise rates now? Of course they can. Does anybody want to go through this drip-drip-drip again?

The markets are making an adjustment. [Federal Reserve Chairwoman] Janet Yellen, please, let the markets do it. Don't put the markets through this again...

One of the reasons you're seeing big moves in things like the yen against the dollar and the euro against the dollar is because there's a short position created for carry trades. Yes. But there is another side to this. It doesn't matter how the values get up here. This is a recalibration trade now that currencies are recalibrating in favor of the dollar. Listen, I only made it through about half but you get the idea. You're dealt a hand, play it. Don't live in denial!

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