January 1, 2024 | This season’s ‘Santa Claus Rally’ marks the eighth straight, as markets bounced back after a tough 3rd Quarter 2023.
Why It Matters: The rally hinges on expectations of Fed rate cuts in 2024. This optimism is delicate; a shift in Fed policy could reverse markets.
Source: dailychartbook
...December 18, 2023 | Expectations of cuts have nudged down interest rates, driving mortgage rates to an 8-month low.
Why It Matters: It’s key to watch if this mortgage rate dip will reignite the housing market, enticing buyers back into the fray.
Source: dailychartbook
...December 18, 2023 | Inflation shows a cooling trend with recent figures aligning with subdued expectations.
Why It Matters: Inflation is approaching the Fed’s +2% goal, and opens the door for potential rate cuts, providing the economy a much-needed respite.
Source: Source Financial Advisors
...December 18, 2023 | Stocks moved higher as the Fed adjusts its outlook, now expecting three (3) rate cuts in 2024.
Why It Matters: Markets are factoring in these additional forecasted cuts, hinting at the sunset of the high-interest era, a transition cheered by investors.
Source: SoberLook
...December 11, 2023 | ‘”To Hike or Not to Hike?” That is the question. Markets now expect Fed and European Central Bank (ECB) rate cuts in 2024.
Why It Matters: Investors believe lower rates will boost stocks. But beware: if cuts hint at a recession, we could see a stark market drop.
Source: Daily chartbook, SoberLook
...December 4, 2023 | The Impact of rising rates in the Europen Union (EU) is apparent, as data consistently falls below estimates.
Why It Matters: To gauge the EU’s economy, there’s a need to focus on specific rates and regions.
Vulnerable to rate hikes, the Southern EU region offers early signs of broader effects. Source: Gavekal