The Stock Market Gets What It Wants

Let’s hope it is also what the market and economy need. Certainly, with inflation having come down over the past couple of years, there is room to reduce interest rates. Hopefully, inflation will stay on a downward path. The 2% “Fed” target is still elusive.

The Bull has often written in the past that this level may be difficult to achieve and sustain. 2.5 – 3% looks far more likely in a deglobalizing world and one that is increasingly hostile. Both add costs to the world’s trading system.

The Federal Reserve may now be quietly accepting a higher inflation target. Just do not ever expect them to acknowledge this fact. The economy has been growing well, even with the higher interest rates. The stock market is at an all-time high. Now rates are coming down. This should lead to even more stock market gains. Stay steady my friends.

-The Lonely Bull