The David Lin Report Fed Pivots In Unprecedented Economy: How Will Markets Respond Next? | Adam Kobeissi
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Sep 26, 2025 Adam Kobeissi, Founder and Editor-in-Chief of The Kobeissi Letter, discusses the macroeconomic landscape, predicting stock, gold, and Bitcoin surges as the Fed may cut rates despite rising inflation. He explores labor market weakness, the impact of AI on trading, and historical S&P movements post-rate cuts. Kobeissi also warns about tech concentration risks in the S&P, shares insights on younger investors' interests in crypto and gold, and speculates on potential housing market dynamics related to interest rates.
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Labor Market Weakness Is Cyclical
- The US labor market is weakening via falling job openings, rising initial claims, and elevated underemployment.
- Adam Kobeissi sees this as cyclical disruption amplified by AI, not a 2008-style collapse.
Own Assets; Buy Dips
- Buy assets rather than sitting on the sidelines because easier Fed policy plus AI CapEx should fuel a search for yield.
- Expect volatility and occasional drawdowns, but treat dips as buying opportunities.
Fed Cuts With Records Usually Boost Stocks
- Historically, when the Fed cuts with the S&P near record highs, the S&P has ended higher 12 months later.
- Kobeissi cites an average gain near 15% and uses that as a base-case for a higher S&P in 12 months.