US Rate Cut FOMO In Stock Market Correction Window

Stock-Markets / Stock Markets 2024 Sep 22, 2024 - 10:43 PM GMT

Dear Reader

It's your lucky day, you get access to my latest market brief made available to patrons 22nd September.

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Stock Market Brief - 22nd Sept - 7pm (UK Time)

US 0.5% rate cut signals that the Fed wants to bring rates down fast from the 5.5% peak, with likely another 0.5% cut before year end and probably targeting sub 4% by the end of 2025 to maybe to around 3.5% which will act as a huge wind behind the stocks bull markets sail as multiples expand. Which in fact is contrary to that which most expect i.e. the analogs being peddled across the blogosfear point to the Fed deep cuts being associated with bear markets which is true! BUT those cuts were in response to FINANCIAL and ECONOMIC CRISIS which is not so today. Remember the market DISCOUNTS THE FUTURE IN THE PRESENT, so is discounting strong economic and earnings growth for 2025 following the 0.5% rate cut by expanding multiples in the present. Rate cuts should act to boost downtrodden stocks such as NIKE and Walt Disney that I accumulated some exposure to.

S&P spiked higher on rate cut FOMO, whilst the direction of travel for the bull market is definetly higher i.e. I see the S&P trading to over 6000 during January 2025, in fact I have been stating for most of the year that S&P trading to 6000 before year end would not surprise me, nevertheless we remain in the 'correction' window that runs well into October that to date has delivered several opps to accumulate target stocks at deep discounts as my focus and I presume most Patrons is on accumulating AI tech stocks so what the S&P does or does not do is not that important given that it is what not most are seeking to buy or sell. Therefore we should get further bites at the AI cherries such as Nvidia over the coming weeks in the run upto the election 2024 when americans get to select their next shareholder in chief, a vested interest in maximising the return on their stock portfolio so focused on entering office to gift contracts to the corporate Oligarchy!

And here's a reminder of why folk should not make the mistake of having little exposure to Nvidia, the more exposure the better - next gen accelerator (Blackwell) is 30x current gen H100, the AI bubble is nowhere near it's peak, take current deviation from the high as an opp you will regret missing, reminds me of buying bitcorn during Q4 2023, we all wanted it to dip back down to $25k but as I stated at the the time I was adding a little bit of bitcorn every other day to build up exposure, because eventually it's going to rocket higher, that's what folk should also be doing with likes of Nvidia. https://www.nvidia.com/en-b/data-center/gb200-nvl72/

Meanwhile bitcorn at BTC $62.8k remains on the launch pad awaiting blast off on break above $65k that will probably see BTC trade to well over $80k before it next corrects. The next rally is going to be nuts, folk are going to become convinced that $100k and then $200k are just around the corner just as Bitcoin next tops probably around $88k.

Your buy the dips analyst focused on updating the EGF's etc in advance of next earnings season which will be the focus of my next article by which time most stocks will likely be trading significantly lower then where they trade today.

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Most Recent Analysis - Stock Market Trend Forecast Sept 2024 to Jan 2025

CONTENTS

The Correction Window
US Interest Rate Cut Incoming
Stock Market 2024 Road Map
Stock Market and Presidential Elections
September the Weakest Month of the Year
Stock Market Trend Forecast Sept to Jan 2025
Stocks Bull Market Big Picture
2027 Destiny with a Bear Market
The AI Mega-trend is EXPONENTIAL
Why AI WILL Kill Jobs - The Robots Are Coming
AI Means Rendering in Real Time
AI Stocks Portfolio
INFLATION MEGA-TREND Tsunami Waves Current State
GBP Bull Market Trend
US House Prices
US Housing Stocks Current State
UK House prices
Presidents are Puppets on a String
US Presidential Election 2024
Bitcoin $60k

Recent analysis includes -

28th August 2024 - Nvidia Earnings vs Stock Market Correction Window

5th August 2024 - Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks.

30th July 2024 - Dubai Deluge - AI Tech Stocks Q2 Earnings Correction Opportunities

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By Nadeem Walayat

http://www.marketoracle.co.uk

Nadeem Walayat has over 35 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of five ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series that can be downloaded for Free.

Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication that presents in-depth analysis from over 1000 experienced analysts on a range of views of the probable direction of the financial markets, thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

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