January 15, 2024 | Markets are banking on rate cuts of -1.5% in 2024, with a ~70% chance starting in March according to the investment community.
Why It Matters: Markets are upbeat about the Fed playing nice with rates. If they don’t, it’ll be a wake-up call as markets adjust to a less friendly Fed.
Source: SoberLook
...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
...With Patrick Huang and Michelle Smith – CEO, CDFA™ Source Financial Advisors, and founder of Wife2CFO.
...Spending and the Pandemic: Over the past 75 years, American consumer spending has had a clear, distinct trend line: There has been a lot more spending on services and a lot less spending on goods. You might say we as a country have been putting more money toward experiences than things. This trend has been so pronounced, in fact, that by the end of 2019, $0.70 of every dollar spent was going towards services, leaving just $0.30 for goods.
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