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Bert Dohmen is a serious analyst and a trader. You’ve probably seen him on national TV such as CNBC, Neil Cavuto’s show on FOXNEWS, CNN, or read his views in Barron’s, the Wall Street Journal, Investor’s Business Daily, Business Week, etc. He is a professional trader, ...more

Will A Rate Cut Be As Bullish For Stocks As Everybody Believes?

Date: Tuesday, July 30, 2019 1:48 PM EDT

Fed head Jerome Powell’s assuring testimony in front of Congress on July 10th hinted more than ever that a rate cut would be made later this month. This sent the major averages soaring to new record highs on the DJI, S&P 500, and NASDAQ.

However, at Dohmen Capital, we pose the important question: “are declining interest rates bullish for stocks?” This is what all investors should be contemplating right now.

Many analysts say that a decline in interest rates will be used as fuel for more enthusiasm for stocks. That works…until investors find out that declining rates are indicative of economic deterioration.

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