Global impact: Why stocks and gold are hitting record highs in a world that fears rate hikes (When bad news is good news)
(By Taylor from Silicon Beach) Simultaneous record highs in equities and gold do not signal economic optimism; they celebrate fear. In modern markets, the rising probability of rate cuts by the Federal Reserve and other central banks turns negative macro news into bullish catalysts. Paradoxically, there is a lot that’s constructive in this dynamic—and a lot that isn’t.
(5-minute read of high strategic value)
(By Taylor from Silicon Beach) Simultaneous record highs in equities and gold do not signal economic optimism; they celebrate fear. In modern markets, the rising probability of rate cuts by the Federal Reserve and other central banks turns negative macro news into bullish catalysts. Paradoxically, there is a lot that’s constructive in this dynamic—and a lot that isn’t.
(5-minute read of high strategic value)