Fidelity Director of Global Macro Jurrien Timmer is back on the show today for his analysis on the latest market action, including the much-anticipated Fed announcement and what it may mean for you. He explains that the size and speed of the rate cut are not as important as the terminal rate and the Fed's path to reaching a neutral policy rate. He believes the Fed has room to be more aggressive with a 50 basis point cut to jump-start the rate cutting cycle, as inflation has moderated and the economy is not in crisis. Jurrien and host Pamela Ritchie also discuss the rotation in the market away from the mega-cap growth stocks towards the broader market, and how active management can help capitalize on this shift. Jurrien also touches on the favorable financial conditions, the strength of the earnings outlook, and the implications of fiscal dominance for gold prices. 

 

Recorded on September 16th, 2024.