Thoughtful Money with Adam Taggart Did The Fed's Hawkish Cut Just Change Everything For Markets? | New Harbor Financial
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Dec 24, 2024 Join John Lodra and Mike Preston, lead partners at New Harbor Financial, as they break down the Federal Reserve's recent hawkish stance. They discuss its shocking impact on financial markets, with the S&P plummeting by 3%. Is this a mere bump in the road for bullish trends or the start of a significant reversal? The duo also explores investment strategies, from gold and Bitcoin to the intricacies of tax strategies like Roth conversions, providing insights vital for navigating today’s unpredictable economic landscape.
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Impact of Fed's Announcement
- The Fed's rate cut announcement and its changing guidance have significantly impacted market predictions.
- The market's assumed terminal rate for 2025 has increased, affecting even those invested in T-bills.
Uninverted Yield Curve Warning
- The recent uninversion of the yield curve is a significant economic warning sign.
- Historically, yield curve inversions followed by uninversions have led to recessions.
Market Extremes and Tech Bubble Comparison
- Current market conditions resemble the tech bubble of 2000, with extreme valuations and over-bullishness.
- A 3% pullback doesn't resolve the underlying market extremities.