AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
Anticipate Recession, Not Recovery
Investors often react to the expectation of Federal Reserve rate cuts by purchasing risk assets, mistakenly believing this signals a recovery. However, these cuts typically occur in conjunction with economic recessions, leading to downturns in the markets. This pattern reveals the importance of understanding that the initial rate cuts do not herald growth but rather respond to declining economic conditions. Furthermore, the current market environment exhibits greater complexity, diverging from the previous trend where all assets moved in unison.