Excerpt from Louis Navellier's Marketmail - 6/18/2019
The stock market was largely on “hold” last week in anticipation of the upcoming Federal Open Market Committee (FOMC) meeting and clarification of when the Fed might start cutting key interest rates. Right now, the Fed Funds futures are signaling about a 74% chance that the Fed will cut rates at its late-July meeting. I think that a cut at the September meeting is much more likely, since President Trump likes to “torment” the Fed by telling them that they made a mistake by tightening too quickly last fall.
Since the Fed is supposed to be independent of the White House, the Fed says that it is “data driven” instead of doing what President Trump wants, so we’ll dig into some of the details that will influence the FOMC’s decision, as well as covering ways to profit from collapsing worldwide interest rates.
Bryan Perry takes a ride in the profitable convertible market this week – that hybrid security market in which bonds can convert into common stock. Gary Alexander reviews the chances that this longest bull market and longest economic recovery can keep getting longer into 2020. Ivan Martchev examines the changing interest-rate environment in the last six months and how that intersects with the China trade deal standoff and new tensions in Iran. Jason Bodner uses a Father’s Day lesson to impart lessons of why we buy and hold the best stocks rather than over-trading, and then I’ll return with a review of last week’s various inflation indicators, the latest oil market realities, and the rest of the FOMC’s data checklist.
Income Mail: The Market’s Top-Down Case for Convertibles
By Bryan Perry
Buy Your Own Convertible (car) With Convertible Profits
Growth Mail: The Longest Day, the Longest Bull Market, and the Longest Recovery
By Gary Alexander
Growth Trumps Value This Year and This Decade
Global Mail: There is a Bull Market in Bonds Out There
By Ivan Martchev
Political Judo, Sun Tzu-Style
Sector Spotlight: A Father’s Day Message from 37,000 Feet
By Jason Bodner
Growth Still Leads the Way
A Look Ahead: Inflation is Low (and Going Lower), Giving the Fed Room to Cut Rates
By Louis Navellier
Other Economic Indicators That the FOMC Will Watch Most Closely This Week