July 10, 2023

Good afternoon,

Did anyone get the memo that the market would fall 500 and then rally hard after the Fed statement?

John didn’t and neither did I.

What a short covering event it was!

And did you see what Gold did? Straight up and then back down again.

Even with the Nasdaq rallying hard, the consensus is that it is still not a good time to be buying stocks.

Dan Niles, hedge fund manager of the Satori Fund, said he expects stock markets to fall by the middle of this year as the Federal Reserve opts to keep interest rates higher for longer. On Thursday, he told CNBC that there was a disconnect between market expectations and the U.S. central bank’s messaging.

Jerome Powell said he doesn’t expect to cut interest rates this year. However, interest rate swap data shows that a significant proportion of the market expects a cut in the base rate by the middle of this year.

Niles believes that when we get to mid-year, and it becomes obvious that the Fed is not going to be cutting rates, a realization is going to hit that the Fed is not going to help you out like people want.

Niles expects the S&P to fall to 3,000, 25% below its current level.

Elon Musk and Twitter

According to the Financial Times, Musk is planning to build a fiat payment system that could allow for crypto functionality later. Musk wants Twitter to be the “everything” app where the platform offers fintech services, like peer-to-peer transactions, savings accounts, and even debit cards.

Within a short amount of time, it is likely that Musk will run “Siri” out of town. Instead of talking to her on our phones about the weather, etc, we will converse with her cousin who will be organising our days and keeping us on track. The future is happening fast…

Have a great weekend.

Take care.

Cheers,

Jacque

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