Market Snapshot July 10, 2019
Good Morning on this fantastic Wednesday best day of the week,
Great commentary from Dan Rawitch this a.m.:
The Fed spoke this morning and his comments have been said to be the most dovish comments made by a Fed in recent years. This certainly does pave the way to lowering the Fed Funds rate. Stocks were up over 150 points and have since given back half of those gains. Similarly, bonds ran up and have settled back down. It seems the market has had time to cool off and has taking a bit more of a wait and see attitude. One word of caution is that the market has baked in some or all of the Fed’s move. There have been many instances when the Fed lowered rates and the ten year bond prices fell. I don’t know how much is baked in, but I know that a move has been largely anticipated. Now the question the market has is whether he will lower .25 or .50 bps. There is a 58% expectation that he will lower rates by a full 50 bps. This is where the chances for trouble exist. If he raises by 25 the market may sell off a bit. This afternoon will be interesting.
Make today great!