Fed’s Powell just said the June jobs report did not change his view on interest rates, which means he’s gonna cut.
And then there’s this:
“Crosscurrents have reemerged,” Powell said. “Many FOMC participants saw that the case for a somewhat more accommodative monetary policy had strengthened. Since then, based on incoming data and other developments, it appears that uncertainties around trade tensions and concerns about the strength of the global economy continue to weigh on the U.S. economic outlook.”
I cannot give you a rational explanation as to why the Fed, all of a sudden, acquiesced to Trump. Maybe the specter of having Dr. “Gold Bug” Shelton on the board made them bend to Trump? Maybe not. Maybe, just maybe, they’re all fuckheads. But that’s not the point here today. We have to trade the market in front of us, not the one we want.
The fact is, the Fed will be cutting rates into a roaring economy, with stocks at record highs.
Digest that for a moment.
Who wins and who loses?
The dollar should be denigrated — seeing it down 0.4% today confirms that. How about inflation? Yes, inflation should come in hot — helping gold prices explode. Gold is up 0.7% and oil is up almost 3%. This is going to be inflationary, cheap vaudeville money sloshing around and looking for yield.
Value stocks will be in play.
Overall, this is very bullish for stocks and that’s why we’re rallying.
I sold out of CRWD for +3%. It was purchased yesterday before the bell. Each and everyday I buy a stock for an overnight hold. Thus far, the results have been nothing less than staggering.If you enjoy the content at iBankCoin, please follow us on Twitter