WARNING: Next Rate Cut Will Likely Trigger Market Bloodbath

7 set 2023

In trading terms, a historical pattern emerges when the Federal Reserve initiates a rate cut, often resembling a "correction" in response to previous actions. This correction tends to usher in a phase of further market decline, as the downward momentum of the train must come to a halt. Simultaneously, the government's implementation of quantitative easing (QE) or similar measures is necessary. These provisions need to be not only approved but also set into motion to allow money to gradually flow back into the strained financial systems.

However, it's important to note a significant difference in the current landscape compared to past periods. More individuals now have access to purchasing stocks and other assets through their mobile devices than in previous eras. Additionally, there appears to be a greater emphasis on forward-thinking strategies today, with investors looking ahead six months, nine months, or even a year into the future. This forward-looking approach may contribute to a delay in the onset of an impending recession and the signals provided by the Yield Curve inversion, among other economic indicators.