(8/3/21) Ahead of this month's Jackson Hole meeting, the Fed is stuck in a box: Imp[roving economy, stronger employment, and rising inflation--which should push them to raise rates and taper QE. But, the Bond market is signaling that the economy is NOT all that strong, yet. So long as QE remains in place, market fundamentals don't really matter. There's currently a lot of headroom above the 50-DMA; there is a large deviation between market prices and the 200-DMA. The farther we get into the Buy Signal, the closer we're getting to triggering another MACD Sell Signal. Equally important from the Fed is their outlook for growth in the economy, with one eye on what's happening with interest rates. The 10-year Treasury rate nailed it in terms of where economic growth was going to be pegged--at 6.5% in March vs expectations of 13%. Something is not right within the economic complex. Yields are declining, and another Buy signal is imminent. We're looking for a reduction in economic policy, weaker growth, and the potential for weaker market growth. The shifting of risk will move money back into bonds, and push yields still lower. - Hosted by RIA Advisors Chief Investment Strategist, Lance Roberts -------- Articles mentioned in this report: https://realinvestmentadvice.com/market-rally-continues-as-earnings-beat-estimates-07-30-21/ -------- Get more info & commentary: https://realinvestmentadvice.com/newsletter/ -------- Visit our Site: www.realinvestmentadvice.com Contact Us: 1-855-RIA-PLAN -------- Subscribe to RIA Pro: https://riapro.net/home -------- Connect with us on social: https://twitter.com/RealInvAdvice https://twitter.com/LanceRoberts https://www.facebook.com/RealInvestmentAdvice/ https://www.linkedin.com/in/realinvestmentadvice/ #Stocks #Money #Finance |
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