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Stocks surge after Powell signals rate cuts ahead

Mo money, mo problems.........I hope we're not heading into bubble territory.
 
I don't know what the prescription for stagflation is. We'll find out how this works.
 
He was fairly noncommittal but more positive than prior. Will be interesting to see what Trump does with job numbers now that he needs to keep them low if he wants that cut! HOOT!
 
Callen said:
He was fairly noncommittal but more positive than prior. Will be interesting to see what Trump does with job numbers now that he needs to keep them low if he wants that cut! HOOT!
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Yeah. So noncommittal

 
VySky said:
Yeah. So noncommittal
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I didn't say the markets were noncommittal just that Powell was though, as I said, he was far more positive than up until now. I think those job numbers, you know the fake ones, were alarming to him. The markets are loving the change in tone and so is my portfolio.
 
Not exactly what he said.

Federal Reserve Chair Jerome Powell on Friday opened the door ever so slightly to lowering a key interest rate in the coming months but gave no hint on the timing of a move and suggested the central bank will proceed cautiously as it continues to evaluate the impact of tariffs and other policies on the economy.
 
TobyOne said:
Mo money, mo problems.........I hope we're not heading into bubble territory.
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It’s definitely more risk than I’m willing to assume. JP Morgan published a dot-plot chart of the FPE (the forward price-to-earnings ratio, or the ratio of the price of a stock to its predicted 12-month earnings) of the S&P 500 to the subsequent expected 10-year return for that index. At a time when the FPE was 23, the expected 10-year return was between -2% and 0%:



For what it’s worth, that ratio currently sits at about 27.

If we look at the Shiller CAPE ratio, which looks at historical trailing earnings going back ten years to even the results out over an entire business cycle, that ratio is also at or near historic highs and indicating poor returns going forward. Bonds actually look like a better bet.
 
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