Daily Charts - Fed cuts a further -25bps to 4.75%

1.Fed cuts a further -25bps to 4.75%

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p.s. if this turns out to be it for the Fed (i.e. a Short Cut cycle, followed by a return to hikes) -- both stocks and bonds are basically on-track

Short-Cutting cycles tend to see bond yields head higher and stocks trend up:

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Meanwhile Brazil continued it's un-pivot -- back into rate hikes after a short-lived cutting cycle

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2.Looking at the breakdown of Expected Returns for Global Equities we can see how US stocks face a very high valuation hurdle to overcome

Meanwhile the rest of the world has a slight valuation edge and tailwind

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3.US investors have a massive home-bias when it comes to their stock portfolios... and some might say justifiably so.

But it turns out there are a lot of countries with an even bigger home-bias (albeit kind of interesting to compare and contrast those at the top vs low end in this chart 🧐 )

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4.Commodity prices go through fairly clear (albeit often extreme) cycles of boom and bust...

Tip -- you can actually use "valuations" to help detect these cycles:

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