July 31, 2019
Okay, so there’s a lot of earnings news this morning, but we’ll get to that in a minute.
More importantly to most anyone’s investment portfolio is the direction of interest rates. If you look back to 1960, the Federal Reserve has cut interest rates, on average, more than 25 times per decade. This afternoon at 2 o’clock, the Federal Reserve is universally expected to cut short-term interest rates by a quarter of a percent. That will be the first interest rate cut in 11 years.
Of course, that lack of rate cuts can be explained by the near-zero rates adopted during the Great Recession of 2008 and 2009. However, it is remarkable that we haven’t had a rate cut this decade, while Central Banks across the globe have continued to cut rates, some even below zero.
Okay, back to earnings – Last night Apple reported very strong...