50 Bps Buzz (E44)

The federal reserve decided to cut rates by 50 bps. This is a cut in the right direction; however, the rate cut didn’t make that much of a difference in loans and the market, as the cut was already priced in. This rate cut will, however, prep us to possibly go to new highs in the stock market, housing, and Bitcoin. There is high speculation of BTC taking off and rallying in the upcoming days, driven by new interest from institutional investors and an overall bullish sentiment in the crypto space. Could it finally breach the 60k threshold that many traders have been eagerly watching? What about the stock market—can SPY break out above 600? If we see continued momentum, it is plausible that we might witness a significant rise, ushering in a new bullish phase. With the recent rate cuts, I expect to see several investors jumping into the housing market before others catch wind of the potential opportunities, leading to all-out bidding wars in desirable neighborhoods. Be on the lookout for Powell’s speech on Thursday the 26th, as it will provide crucial insights into the Fed’s future plans and monetary policy direction. Additionally, keep an eye on the price index data coming out at the end of the week, as this could significantly impact market sentiment and investor behavior moving forward.