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The Disciplined Investor

TDI Podcast: McClellan’s Tidal Forces (#854)

Feb 4, 2024
Guest Tom McClellan, a graduate of West Point and market report expert, discusses advanced decline statistics, their contrarian viewpoint on climate data, and the McClellan oscillator. They also recommend briefing.com for investment information.
50:42

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

  • The delay in rate cuts by the Federal Reserve could lead to potential problems later this year.
  • The divergence between rising stock prices and declining used car prices may need to align in the future, either through stock price decline or used car price increase.

Deep dives

Fed needs to cut rates to catch up with the bond market

The two-year note yield is a full percentage point below the Fed funds target, indicating that the Federal Reserve is behind the power curve and needs to cut rates immediately. Historically, when the Fed thinks it knows better than the bond market, it has proven to be wrong. This delay in rate cuts could lead to potential problems later this year.

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