Quite a week! Powell all but assured a rate cut in July; the yield curve steepened; the dollar weakened; trade talks with China opened; commodity prices increased; and stock markets rose. Doesn't it sound like our playbook the last few weeks?
What more can the pundits say who have been so negative and quite frankly, wrong throughout this period now that the markets have reached new heights? Yes, we too, are concerned about the second quarter earnings but that is looking in the rear-view mirror. Remember that the Fed was tightening throughout 2018 slowing growth