...Markets are rising again on the back of a 50bps rate cut, the Fed pivot rally.
...and all leading to the Sept FOMC next Wed - Powell's guidance then would provide direction for equities and Gold. He may be less dovish to confirm a definitive rate cut trajectory as those like Citi had been expressing.
...it does feel like this rally has legs, right? That too was the feeling back in Dec 2019, but a market disconnected with the realities of Main St and the actions of major corporations in laying off staff can't be sustainable on an indefinite basis. Apathy until we get punched in the face.
...so like Dec 2019, I am sitting on the sidelines, waiting and staying discipline.
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You have to go back 30 years to find a rate cut that was good for stocks. And that's the year everyone uses.
