Jesse Felder – Loosening Of Financial Conditions The Greatest In History
Jesse Felder, Founder and Editor of The Felder Report joins us to share a range of factors that have him concerned about the stability of the US markets. A lot of the focus is on the “historic loosening of financial conditions” in the US. We discuss how this loosening has factored into the massive market run alongside a wide range of sectors moving to all time highs.
The key areas we focus on are the A.I. trade, gold and gold stocks, oil sector, Fed policy and US Dollar. We also look internationally at Japan, who just exited its negative interest rate policy, and if China will continue to struggle.
I listened because of your comment and one thing I do disagree with if I’m understanding him is the implication that the current level in the stock market would be supported by lower rates. I don’t buy that at all. In fact the only reason stocks haven’t been weaker is the Fed’s delaying cutting. As for the coming bear market in stocks, long term momentum developments showed its inevitability 2 years ago and the higher price highs since then have done nothing to change that.
Bonds are about to chase gold much higher so the Fed will likely be forced to cut sooner than many expect. It won’t be pretty for stocks and certainly not supportive.
https://stockcharts.com/h-sc/ui?s=TLT&p=D&yr=0&mn=5&dy=0&id=p59129592579&a=1628523668
I listened to the part about rates again and I am not misunderstanding him. He said if rates don’t come down in a very meaningful way it could cause real problems for stocks.
Hard to believe there are no comments on an interview with one of the premium analysts in the country. Disregard his words at your own peril. JMO