The Future Bullish Progression of Fed Policy
The current market cycle is coming to an end, finally, over the next 6-8 weeks
The current market cycle (which started in November) can be considered an environment where liquidity became tight, and even contracted, to slow economic growth and inflation. This is currently coming to an end and a more dovish stance on policy is coming very soon. Covered in this Newsletter:
Monetary policy and how it influences both economic and market cycles
Leading economic indicators to suggest a pivot in monetary policy
Where money will rotate out of and where it will rotate in to
Contrary to popular, main stream, consensus, they are rarely right over the long term. In most cases, a majority of the market is just following trends in an attempt to get on the next ride upward. Sometimes these trends last awhile and others can be more short lived. In our case today, both the bull market and bear market we have experienced over the past two years have been very short lived. Largely, this was driven by monetary policy governed by the Federal Reserve. What this means:
Inflation is going to decline as economic growth slows down
This slowing growth is driven by the rapidly changing monetary policy
A “Powell Pivot” is on the radar and money will likely begin its rotation now in anticipation
How Monetary Policy Controls the Business Cycle
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