It’s more than likely going to be another week of sloppy trading.
Besides being an extension of last week when the Dow Jones Industrials rose gently on Monday, flat lined on Tuesday, dipped Wednesday, rallied Thursday, and ended Friday drooping into the close, there’s nothing monumental right in front of markets right now.
A rate cut at the end of the month is a foregone conclusion.
Thank you, Federal Reserve, for your cheerleading.
It’s going to be a quarter point, not a half point as some overzealous analysts were touting.
Yesterday I exposed just how much control the Fed enjoys over America’s financial freedom. If you didn’t happen to catch it, read on here. Over its brief history, essentially the Federal Reserve can and continues to manipulate all of markets. For my Money Zone subscribers yesterday, I gave greater details on how any investor can trade with this kind of reality and make life changing profits beating the Fed along the way. If you’re not yet subscribed, you’ll want to check out here how to get full access to this. Click here to watch.
Just a few days ago, Shah shared his contrarian view on Tesla’s record filled orders: the market has simply been too generous. Though the stock pops, the demand of orders are all fulfilled, and competition is creeping in. Shah also addresses what kind of effect the disappointing jobs number will have long term on markets and the economy at large… 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.