The S&P 500 Index and QQQ closed to all-time highs on renewed confidence of a fed interest rate cut this week. The S&P 500 ETF SPY rose 1.7% on the week, and the Nasdaq 100 ETF QQQ was up 2.3%.
In Barron’s article, Scott Minerd mentioned that the Fed’s current policy of pre-emptive interest-rate cuts will likely lead to unsustainably high asset prices and more financial instability, which might make the next downturn worse.
With the stock market at record highs and unemployment near a 50-year low, adding fiscal stimulus does seem political.
Sorry, this content is for members only.
Already a member? Login below…