Quarterly Outlook
Macro Outlook: The US rate cut cycle has begun
Peter Garnry
Chief Investment Strategist
Chief Investment Officer
Summary: Policymakers are taking yet another dip in the 'pretend-and-extend' punchbowl as both monopolies and central banks snap up assets across the board. No market trades freely, price discovery is zero, and it is time to get long inflation.
Instrument: 10-year US Futures
Price Target: not specified
Market Price: spot 121 19.5/32
Entry: spot 121 19.5/32
Stop: 122 28/32 on the close
Target: 118 ½
Time Horizon: long term
For those of you who are inclined to learn from history, I implore you to read Paul Volcker's book 'Keeping At It', noting particularly the chapters on how he and then-Treasury Secretary Connally took the US out of the Bretton Woods agreement with the policy at the time being: controls, tariffs (on Germany), devaluing the dollar and trying to ditch the trade deal in place with Canada!