Reading The Tea Leaves.
Last week was always going to be about Wednesday’s Federal Reserve meeting and its fallout. We are undergoing a major shift from the question being “How high will interest rates go?” (the market’s obsession over the last eighteen months) to “How long will interest rates stay high?” going forward.
It is now the answer to this second question that will determine if the Fed’s stance is deemed to be hawkish (bad for stocks/bonds) or dovish (good for stocks/bonds). For any rally to continue, markets need, at a minimum, for the Fed to meet current expectations of (almost) no more rate hikes and…
The skinny
The skinny isn't ready yet — notes appear once the transcript is processed.