The market in general is anticipating 2-3 interest rate cuts beginning in June, which is important because the stock market has been reaching new highs – not based on earnings growth but rather on valuations which depend on the rate reductions. Recall that in March of...
Mariann Montagne, CFA Summary: While the government inflation rate moves toward the Fed’s 2% goal at a snail’s pace, higher interest rates are likely to mean lower valuations for bonds as well as stocks. Higher rates will also stem borrowing for business expansion and...
