Different game, different play. Five Fed governors yesterday tried to show that they are in control. They lost control a year ago with “transitory”. So forget pivot, there is nothing to pivot. Fed funds at 3.0 % is a good base, not too high, not too low. Curve will adjust.
Yesterday, if on the close you add up the five rates on the curve between 3 mo and 30 yrs, the average is 2.813 and the working 2 year rate is 3.069. Also adding up the total variance up and down the curve, it is very small relatively. The market is calm and in control of itself
Over the weekend we will be providing a review of the activity and performance in the New Economy portfolio, stocks and ETF’s involved, that evolved and what comes next. On our website. Heads up here.
Here is the general outline that we provided on June 24. “The New Economy, I am working on the premise that EV, Tech, Bio are the new leaders as the market starts to move up out of the May 11 to June 17 bottom. Ironically Cathie Wood’s array of stocks is a good place to pick and choose. Our list will be posted on website this weekend.”