P/Es are high…
and investors know this (91% of fund managers say U.S. stocks are overvalued) …
yet stock allocations are the highest since 2007.
Corporate stock repurchases are at record pace. A contrarian indicator, typically.
Stocks, real estate, and especially crypto are dependent on imminent interest rate cuts.
The market is pricing in a 85% chance of a 0.25% interest rate cut [FedWatch – CME Group] in September and anticipating more cuts thereafter.
Bulls take heart: Fed rate cuts when stocks are near all-time highs have always been good for stocks one year out.
About the Author
Neil Rose, CFA, is the founder and CEO of Regency Capital Management.
