Financial Sense provides educational investment resources to the broad public audience through editorials, current news, and resource links on salient financial market issues. It offers a free weekly newsletter and a free weekend broadcast that is available through its website and is hosted by top financial thinkers, including leading money managers, investors, analysts, and authors, with topics on the markets and the economy.
This article examines some of the key factors at play in the market today that likely will influence future market direction. Some of these factors include: (1) There are increasing divergences between the price of equities and preponderance of economic data. (2) The current gap between treasury yields and corporate bond yields suggests that market risks are being mis-priced. (3) The ongoing trade/tariffs war between the USA and China is problematic and the on-off negotiations look like a game of “prisoner’s dilemma”. (4) As yet, there are no definite signs that the slowdown in global growth hsa come to an end, and the USA/China riff exacerbates that situation. (5) Fed Chair Powell’s testimony in front of Congress on July 10 strongly hints at an interest rate cut at the end-of-month meeting.
Although the market seems to be optimistic for the remainder of 2019, the Author is not so sure.
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