12:00 TUESDAY – Bi-Weekly Market Report #243 – 8/6/24

by Robert Holman | www.DefensiveAdvisor.com

STOCK MARKET RATING (THE BIG PICTURE) … 5.0 (1 - 4 is bearish, 5 is neutral, 6 - 9 is bullish). A rate cut seems more likely than ever after Friday’s poor labor market report. 

The Fed meets every 6 weeks.  It is expected to cut rates by ½ of 1% twice in 2024 - in September and December (nothing in November, the election month) – exiting 2024 at 4.45%.  Four to five cuts of ¼ of 1% are expected in 2025, leaving the year-end rate at 3.45%-3.20%. As is often the case, market rates have already moved down substantially, reflecting these expectations.

It’s amazing that oil is going down with Israel/Iran tensions so high, and let’s not forget Russia/Ukraine.

After yesterday’s Monday Massacre we’ve had sort of a Turnaround Tuesday, and investor fear seems to have subsided, for now. It may be a while before the Magnificent 7 reach their old highs, but as always, things change every day.

THESE ARTICLES MAY BE OF INTEREST:  

• A Stock Market Rotation of Historic Proportions Is Taking Shape  This is an excellent article about what may be currently happening in the market.

• ‘America is going bankrupt’: Elon Musk issues dire warning as interest on US debt was equal to 76% of income tax collected in June — and is expected to exceed $1.14 trillion this year 

• “Mega versus MAGA” – Jim Cramer comes out swinging for Kamala Harris 

• Debt Ceiling Will Bring A Storm To Stock Markets and Gold (msn.com)

PORTFOLIOS … After reading this report, if you are unsure how to take advantage of these conditions, you may send a message to my Secure Email (control-click on the link at left) and I’ll reply with the information you need.

TO MY CLIENTS … THANK YOU FOR YOUR TRUST.  We’ve had great success since we started this RIA in mid-2018 and have done better than the market since that period.

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Learn from the Bible: Proverbs 15:22 MSG - Refuse good advice and watch your plans fail; take good counsel and watch them succeed.

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Opinions in this post are for general information only and are not intended to provide specific advice to, or recommendations for, any individual without our complete knowledge of that individual’s total financial profile. No strategy assures success or protects against loss. Past performance does not guarantee future results.