The market $S&P 500(.SPX)$ $SPDR S&P 500 ETF Trust(SPY)$ $NASDAQ(.IXIC)$ $DJIA(.DJI)$ 's hitting new highs! Talk about a thrill ride! I'd say it's like a sugar rush for investors - sweet on the outside, but you know there's gonna be a crash later.
In fact, I don't particularly think it matters at this point. Lowering rates can be achieved for like 2 years but eventually inflation will exceed 6% again. FOMC can lower them to 3% for example but he'll have to raise them to 6% again in 2 years.
Either way, stocks themselves are priced where interest rates are sort of immaterial. Sure stocks are up maybe 600-800 points on the S&P since 2022 but that's still only in line with interest rates since then. And even then, the valuations are just more overvalued.
I think we are in a boom to bust market over 20 years. We will continuously hit highs then fall 20-40% then rinse and repeat every 5 years maybe. Overall I think we'll remain mostly flat.
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