Fed Chairman Powell said in Jackson Hole he MAY have to cut rates in September and the market heard he is cutting rates. The unintelligent stock market did NOT ask why he MAY have to cut rates thinking rate cuts are good for some reason.

The only reason to rationally cut rates into RISING inflation is something bad is brewing. Historically when the Fed starts cutting rates the stock market is in or goes into a Bear market shortly thereafter.

With this stock market sitting above all previous market top valuations in history, there is more future risk than future gains coming its way. But that will not stop the euphoria built up overnight.

Invest safe,

Michael

Categories: Perspectives