From the desks of Stanley Katz & Lauren Madera
STAY SAFE & HAVE FUN!
All three major US stock market indices were down last week (i.e., DJIA: -0.60%, S&P 500: -0.04%, Nasdaq: -0.18%). One could blame Tropical Storm Debby, which hit the east coast hard throughout the week. More than likely, Monday’s 12.4% plunge in Japan’s Nikkei spurred shockwaves in the US. Institutional investors had borrowed at a 0% interest rate in Japan and purchased stocks in Japan and the Magnificent 7 here in the US. It is referred to as a currency carry trade. That worked until it didn’t. Capital Group’s “5 views on tumbling markets” provides a great explanation of last week’s events. Click their link below.
When the markets get volatile, the Federal Reserve has been known to step in and calm things. However, when and how heavy handed will the Federal Reserve’s response be? Every investor should be weighing the potential stock market reaction to that heavily anticipated first interest rate cut. Read Lord Abbett’s research piece below for more insight on this topic.
Below are links to a number of third-party research reports that we have read and analyzed over the past week. We hope you will find the information interesting, useful, and worthwhile.
Capital Group:
Lord Abbett:
Janus Henderson:
Franklin Templeton:
Argus:
Stanley Katz & Lauren Madera, Financial Advisors
ClientFirst Financial Strategies, Inc.
937-293-5500
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