Disclaimer: The content from The Daily Reckoning Australia’s global cast of characters is their own view and opinion. It is not to be taken as investment advice.
One word controls the markets…
- Don’t fear March
- No warning? No rate hike…
- The economic collision of the US and China
- Too little, too late
Once again, we are witnessing the fragility of the markets.
Today, Jim explains how one word caused the US markets to rally over the last two weeks.
For now, it looks like the Federal Reserve will slow its rate hikes. And according to Jim, there’ll be no increase in March.
Closer to home, however, our own central bank is in a pickle.
Except it either doesn’t know it or isn’t willing to admit it.
For two years now, I’ve said the next rate move will be down, not up.
All around me, most other analysts have continued to back the Reserve Bank of Australia and agree with it.
Their view? That of course rates would go up. It would just be absurd for Australia’s cash rate to go even lower. ‘The cash rate in Australia has never been below 1.5%’, they’d say. ‘There’s no way it’ll go lower’, I’d hear.
Just because something has never happened before doesn’t mean it can’t be done.
It’s only over the last couple of months that I’ve seen the mainstream economists and analysts begin to flip their view.
Tomorrow, I’ll explain why the mainstream are beginning to realise the RBA will cut rates.
For now, I’ll leave you with Jim’s analysis on why the Fed will pause.
The key takeaway from today is that markets must be warned about interest rate changes…sometimes months in advance.
Global markets are hanging on the decisions of what a few central bankers do.
That’s not normal. And it’s dangerous for your wealth.
Now, it’s over to Jim.