Today's topics include yet another stimulus bazooka from China, the reason for rate cuts matters, viewing the 50 basis point cut as an insurance policy, when will savers move away from money market funds?, renting vs. buying, the IPO market, a cost-benefit analysis on immigration, and government spending
As the Fed begins its rate-cutting cycle, we check in on stock market valuations.
Assets in money market funds recently rose to $6.4 trillion. Do not expect this cash to be deployed in risk assets anytime soon.
Today's topics include soft landing hopes with lower rates, the Fed's messaging problem causes confusion on path ahead for rates, why are rates rising after Fed cut?, deconstructing the continuing rally, eyes on the coming dock worker strike, new economic data has meaning in markets now, watching repo rates for QT issues, Chinese stocks react to stimulus bazooka, concern of Chinese 'Japanification', predicting a black swan event?, and Bitcoin defies gloomy September expectations
The Fed started cutting rates under the impression they have a clear vision of where the economy is and where it is going. Conflicting data makes the risk of a policy mistake high. Stimulating an economy that might not need it could create more inflation and upset the bond market.
Join us today, September 26, 2024 for our next conference call.
Today's topics include breaking down Fed officials' rate forecasts, the Fed vs. the markets, the jobs market, BTFP loans become less attractive, money market funds remain attractive, betting on Chinese stimulus, and keep an eye on the yen
Today's topics include the risk of resparking inflationary pressures, heavyweight battle: global central banks vs. the Fed, dollar nearly roundtrips its 2024 gains, China's economic growth issues, China's ability to move markets is failing, pressure on traditional asset managers as ETFs and alt managers grow, eroding trust between producers and consumers, and gold is on a mission higher in 2024