Lions... We Have A Problem.
From Greg M
Lions…
The Fed. did cut rates by 25 basis points.
This cut has now brought the low end of the Federal Funds Rate to 4.25, which is now BELOW the current 10 yr yield. And as a result, stocks are falling, see below.
Moreover, the 10yr yield is RISING, see below.
The MMRI is also higher. Click HERE.
Right now the market setup is not looking good. (In a “normal” market situation you would see the 10yr above the FFR however, this is far from a normal situation. Potentially, and it would not take much, the debt market could sell-off rapidly which would put heavy pressure on stocks).
The question is, will the Fed. intervene?
GM
Personally I have gotten out of the market until after Trump is in place they will dump this on him then I will go back In on the rise.
I agree with Greg and Robert. The Fed Will step in and buy it all.