Last week I showed you a bunch of property and infrastructure stocks that I thought could see better days ahead.
Those stocks were up an average of 4.25% over the past week after the US Fed’s dovish pivot.
At the end of last month I pointed out that US bonds, S&P 500, copper, and gold had all confirmed monthly buy pivots while the US Dollar had confirmed a monthly sell pivot.
I don’t often see so many markets agreeing with each other in unison, so the strength of the signals was compounded in my view.
I have also been pointing out that when an interest rate cycle peaks, the reversal can be swift — with rates falling faster than most expect.
US 10-year bond yields have dropped over 1% in the past two months with further falls likely as inflation continues to wane.
For now, stocks are loving it and the Santa rally is in full swing.
Small caps have been underperforming large caps by a large margin over the last year, but that may change as interest rates fall and animal spirits return.
So there is plenty to think about as we head towards the end of the year and contemplate what may be in store for us in 2024.
Click on the picture above to watch today’s instalment of Closing Bell and don’t forget to ‘like’ my video on YouTube if you want to fill me with Christmas spirit.
Regards,
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Murray Dawes,
Editor, Retirement Trader and Fat Tail Microcaps
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