2024-07-18 06:24:15 ET
Summary
- An analysis of how rate cuts are likely to affect the U.S. economy.
- Investment implications for the upcoming cutting cycle and beyond.
- A description of a three-pillar portfolio, which can protect wealth through multiple market conditions.
The first topic for this issue focuses on the observation that the U.S. economy will likely be de-sensitized to interest rate cuts in the next business cycle, similar to how it was de-sensitized to interest rate hikes during this prior cycle.
The second topic examines what investing implications this might have.
Managing Two Time Horizons
As a long-term investor rather than a trader, I mostly optimize for two time horizons in my analysis: intermediate term and long term.
The intermediate term time horizon looks out 18 months or so, to see if we’re likely in a rising cycle or a falling cycle in terms of liquidity, economic activity, and so forth. I use this time horizon mainly for setting expectations and risk management....
Read the full article on Seeking Alpha
For further details see:
The Coming Rate Insensitivity