The economy is slowing down. But who is willing to actually admit it? The statistics are there. But instead, let’s talk about tech stocks and how they will never go down. Oh they dropped a bit? Buy the dip, they will “always” go higher. This is the insanity of the Fed easy monetary policy and humanity having a very vivid sense of imagination. Bad combo.
The Fed is backed into a corner. The market is demanding rate cuts. If the Federal Reserve reacts to the current conditions and drops rates, it shows they are dealing with a weak economy and weak markets. If they don’t touch rates, markets may react negatively because they’re not supporting them. They need that constant stimulus. WIthout the drip, they’ll certainly trip.
Empire State manufacturing index posts largest-ever drop into negative territory in June – MarketWatch
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Goldman Sachs: Technology stocks are overvalued
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