Brian Sozzi Discusses Operation Twist

Brian Sozzi of Wall Street Strategies is out with a research report on market terminology, and discusses Operation Twist, and what it means for the average investor.

In a note to investors, Sozzi writes, "Finance peeps in the know don't make it easy as they are trapped inside their own world of arcane terms, which I understand 100%. Take for example the concept of Operation Twist. Does a college grad with a non-Ivy league Bachelors degree in finance surfing a financial news website have any clue what Operation Twist means? Or how about a typical trader on the floor of the NYSE? No way that one month ago, when Operation Twist began to enter the mainstream financial vocabulary, that said floor trader ever heard of Operation Twist. It's almost as if these terms are made up by a secretive arm of the SEC that is housed underground."

Sozzi describes Operation Twist as "program devised by the Federal Reserve in the 1960s to creatively ease monetary policy through the purchase of long-dated notes." He likens it to the Fed "essentially dipping back into its honey pot (deeply) for additional accommodation, hoping to extract a last drop of sweetness." He has coined it "Operation Pooh Bear."