The Fed's Potential Pivot: A Bullish Signal for Risk Assets
Based on the Fed's past reaction function it has No Business cutting rates on either labor or inflation.
Image
Image
In fact, if anything, you might argue the FFR should be closer to 6%.
Of course they're not going to hike, but this tells us something very important...
Our job is not to make policy arguments or opine on what they should/should not do, it's to take stock of what they are going to do and then try make the most of it.
If the Fed does get bullied into cutting rates when rates should actually be higher what does that tell us?
It tells us that rates are going to be WAY easier than they "should be" ---- that's bullish for gold/crypto/stocks.
(and key: eventually also for inflation assets e.g. commodities, as the Fed runs things too easy and stokes up inflation resurgence risk)
Remember the old saying: "trade what you see, not what you want to see"
For whom haven't open CBA can know more from below:
🏦 Open a CBA today and enjoy privileges of up to SGD 20,000 in trading limit with 0 commission. Trade SG, HK, US stocks as well as ETFs unlimitedly!
Find out more here：
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
