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Stocks are sitting at or near record highs, so, naturally, Jerome Powell's Federal Reserve is expected to do its part with another 25-basis-point rate cut this afternoon at 2 p.m.
After all, the stock market is up – the Fed's unofficial, unsanctioned signal to open the cheap-money taps a little wider.
If the Fed moves as markets are "expecting" (read: demanding), this'll be the third reduction in the Fed funds target rate since July, totaling 75 basis points in all, just as it did in 1995 and 1998.
The Fed would be cutting against a backdrop of sky-high stock valuations, decelerating economic growth and job gains, a deepening manufacturing recession, and a political situation that threatens to boil over into full-blown constitutional crisis at any minute.
So this is a really dicey time for investors, but there are some opportunities for savvy folks who understand how to play the Fed against Wall Street – and Wall Street against economic reality.
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25-year run as a hedge fund portfolio manager, family office chief investment officer, managing director and general counsel. Internationally recognized expert in credit and equity markets as well as macro risk management.