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Flash Report September 2019

Bond yields jumped mid-month as investors ratcheted down their fear of imminent recession from last month’s near-hysterical levels. Despite reducing interest rates to accelerate growth, the Fed did not forecast additional cuts in 2019. This patient and ostensibly reassuring signal helped knock the wind out of market volatility and reversed extremes of negative sentiment. As a result, stock prices rose while most bond prices and gold fell. Markets reacted by rotating out of past winners and defensive plays into value stocks.

WRITTEN BY | October 1, 2019

 

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