Ep. 75 - Fed Rate Cuts Ignite Vicious Sector Rotation
The stock market is at all-time highs.
But many stocks aren’t holding up.
Fed rate cuts ignite vicious sector rotation.
Yesterday the Fed cut rates by 25 bps as expected. In general, lower rates are to be celebrated.
Reduced interest rates allow for lower debt costs and easier access to capital.
However, Fed Chair Jerome Powell made it clear that a December rate cut is far from certain. This language pressured tons of stocks…especially those leveraged to interest rates.
In fact, yesterday saw the 2nd largest day of equity outflows since the April crash bottom.
The money flows picture…
The skinny
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