Thanks. So if I understand correctly, you are suggesting being cautious and not expecting the market to go up up up but more likely to drop if the expected 6 cuts don’t occur. In that case, investing slowly...however if the three do occur the idea is that is already priced in. Please let me know if I’ve got it or am way off.
Correct. The market pretty much has 6 rate cuts priced in already. If they get less than that (and I suspect they will), bond yields will need to reprice higher to compensate. Stocks will also be caught off guard and need to correct as well.
Thanks. So if I understand correctly, you are suggesting being cautious and not expecting the market to go up up up but more likely to drop if the expected 6 cuts don’t occur. In that case, investing slowly...however if the three do occur the idea is that is already priced in. Please let me know if I’ve got it or am way off.
Correct. The market pretty much has 6 rate cuts priced in already. If they get less than that (and I suspect they will), bond yields will need to reprice higher to compensate. Stocks will also be caught off guard and need to correct as well.