- The Federal Reserve cut interest rates last week by .25% as most analysts predicted. Given the cut was priced into the market and Chairman Powell’s hawkish comments, the market sold off in response. Many saw it as an “insurance cut” rather than the start of an easing cycle. Powell also indicated it most likely isn’t a one and done scenario, leaving the door open to another cut prior to year-end. https://www.nytimes.com/2019/07/31/business/economy/federal-reserve-interest-rate-cut.html
- Trade-war truce looks to be a thing of the past as Trump announced last week that an additional 10% tariff will start on September 1st on the remaining $300 Billion of goods and products coming from China into the U.S. The markets did an about-face as the news hit mid-day on Thursday, with a swing of over 600 points on the Dow. https://www.cnbc.com/2019/08/01/stock-market-fed-cools-expectations-of-further-rate-cuts.html
- Markets continue to sell off Monday as the Chinese yuan slides lower in response to the latest U.S. tariff threat. The S&P 500 is now off roughly 6% from the July highs and the 10 year Treasury currently yields 1.75% as investors move to safety. We will continue to look for opportunities as Fed action becomes more likely and a single positive tweet could change the direction of the markets. https://www.reuters.com/article/us-usa-stocks/wall-street-slumps-as-yuan-slide-intensifies-trade-angst-idUSKCN1UV189
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