Wednesday’s Market Minute: Fed Fulcrum Is The Baseline Without Fiscal Policy

The question investors are trying to assess right now is how much stimulus has been priced into the market? Yesterday’s limited drop in the market after the President’s tweet suggests maybe not as much as you might think. But then it seems clearly we’re getting something regardless of who wins in November. Either way, we should consider what market dynamics look like in the absence of new aid.

Last year as the Fed wound down its interest rate reversals (cuts), I outlined a blueprint for action called the Fed Fulcrum, which posited that declines in major asset classes would correlate to their dependency on a “lower forever” narrative that …

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