Wednesday, May 1, 2019

Three "Levers" Moving The Market And Only One Lever " Talking" -- May 1, 2019

How much have things changed?

Six months ago "everyone" was worried about another "rate hike" in early 2019. If at that time, Jerome Powell had said "no" rate hikes in 2019, the market would have surged.

Now, the talk has swung the other way: "everyone" sees the need/opportunity for a 25 point basis - 50 point basis cut in the "Fed rate."

So, today when Jerome Powell said he sees no need for cutting (or raising) the Fed rate, the Dow goes from 60 points in the green to 60 points in the red. Just for staying neutral.

And tomorrow his comments will be forgotten.

It's May: "sell in May, and go away."

The three "levers" that affect the overall market: 1) fiscal policy; 2) monetary policy; and, 3) trade. 

By the way, speaking of which, the top bills passed by the 115th Congress so far:


And, we move on.

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2 comments:

  1. Well at least the 115th Congress will be easy to track, progress wise. (Extreme sarcasm applied)

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    1. On the news this morning, US House has introduced a bill to prevent President Trump from exiting the Paris Accords on Climate Change (not as drastic as the Green Nude Eel, but just the same ....).

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