In this morning’s appearance on Varney & Co., while everyone agreed the “Streaming War” was heating up as Comcast and Disney move to challenge the status quo, the rest of the panel was shocked by my bold prediction of who will be the ultimate loser.
In fact, check it out here below to see exactly my breakdown of how things won’t go exactly as planned for the biggest streaming giant of them all. Click here to watch.
With equity markets rallying hard and fast from late December to April 30, then dipping in May, and now rallying to all-time highs for the S&P 500 in June, you’d think tons of capital flowed into equities, then some flowed out, and now more started flowing back in.
But you’d be wrong.
Investor-driven capital waves haven’t been flooding into equity mutual funds and ETFs.
Quite the opposite.
Since we’re back up near all-time highs, you might be wondering where we’re going from here.
Understanding what investors are really doing and what’s really driving equities higher is important.
Not because stocks could go higher, but because they could tank if the real driver of higher prices is killed.
That’s because the ice cream man’s promising to spoon-feed steroids to every man and market, whether they need pumping up or not.
So, go ahead and get back into the market, get all in, why not, because it’s all good until it isn’t.
It doesn’t matter that the Federal Reserve’s gone crazy, in the face of a strong economy, promising to “act as appropriate” and cut rates if pushed by the President, as well as appeasing presumably scared investors running to flight to quality trades that took the 10-Year Treasury yield below 2% last week.
What matters is catching the next leg up in the bull market, the one for stocks as well as bonds.
The Fed’s decision on rate cuts today determines everything for the markets going forward. No matter how many rate cuts the media could possibly predict, Shah isn’t so convinced the Fed will fall for it. What he sees is a much more pressing forward guidance from the Fed that investors need to watch out for. And in response, markets are moving and bustling, so Shah has his eyes on the three sectors taking over all the talk… Click here to watch. Click here to watch.
The Federal Reserve’s already proven it’s more interested in equity markets than the economy.
Under the guise of the economy potentially going to suffer from a protracted trade war with China, the Fed’s James Bullard, president of the Federal Reserve Bank of St. Louis announced rate cuts were in order, and Fed Chairman Jerome Powell said on June 4, 2019, the central bank would act “as appropriate” to risks posed by a trade war with China.
Those bullish comments reversed the market’s May slide and gave investors hope that they’d see a rate cut.
Today starts the two-day long Federal Open Market Committee meeting, and investors, especially in the bond market, but increasingly in the stock market, expect at least some dovish “forward guidance” from the meeting, if not direct talk of a shift from expectations of no action to a potential cut in the future.
But the Fed can’t rescue markets if the trade war turns into a battle royale.
A few weeks back, Shah Gilani predicted that the Dow could go down 10% – and he’s sticking to it. While stocks are clearly trying to make new highs, Shah’s doubtful that this will last. There has been too much of a battle between the Presidents, and Shah thinks that a trade deal may not come as a result. And because of that, he believes the markets are going to sell off… Click here to watch.