Stocks can just go through a big old range trade for long periods of time
One and Done?
For stocks it's generally no big deal if the Fed only does a couple of rate cuts and later heads back into hikes.
Markets are very forgiving of this kind of policy mistake, bonds not so much though
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Case Study
Japanese stocks during the 90's and 00's serve as a reminder that sometimes stocks can just go through a big old range trade for long periods of time...
Bad for buy and hold, Good for active allocators
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Credit Spread probing the lows
Question -- are you more confident owning risk assets when credit spreads are very high or very low?
$.SPX(.SPX)$ $SPDR S&P 500 ETF Trust(SPY)$ $E-mini S&P 500 - main 2412(ESmain)$
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