Skip to content
Subscriber Only

Fed Loses Its Patience and Almost Everything You Can Trade Goes Nuts

  • Oil, gold, stocks, bonds post best combined rally since 2011
  • After similar situations in the past, stocks have outperformed
The Federal Reserve
Photographer: Andrew Harrer/Bloomberg

One crossed-out word was all it took to send financial markets into a unified celebration that has few precedents in the past decade.

Stocks rose to records, bonds surged, oil jumped almost 10% and even gold got into the act, as traders celebrated a dovish conversion at the Federal Reserve. One back-of-the-envelope measure shows the rally in everything was the strongest since 2011.