| | | | And even though rate cuts are expected to start in less than two weeks, nobody seems to be super excited (as I mentioned earlier this week).
So when does this turn around?
Well, to quote O Brother, Where Art Thou: “it’s a fool who looks for logic in the chambers of the human heart.”
But, if I had to stick my finger into the wind and guess, I don’t think this changes until the election.
The one thing that could flip things is a bigger-than-expected rate cut. If Powell announces a .50% or better rate cut, I think that will shock the markets into making a move.
But I don’t think a 0.25% cut will do much. I think that’s already long since priced in.
If we do see a rate cut and the market is still dyspeptic, I don’t see it getting settled until the election, because I don’t see another event that can move people off of the “excuse to sell” attitude.
Of course, I could be wrong. Markets are crazy. But right now, I’d expect sideways action to continue for a while.
As for me, I plan to be sideways about 85% of this weekend as I lay on the couch and watch football.
Hope you get to relax and enjoy it!
To your prosperity,
Stephen Ground
Editor-in-Chief, ProsperityPub
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