Excerpt from Louis Navellier's Marketmail - 7/9/2019
The big news last week was the continued worldwide decline in interest rates, as the German 10-year bond hit -0.397%. A shocking 25% of all the government debt around the world now has negative yields, and the U.S. 10-year Treasury bond fell to 1.943% on Wednesday, leaving no doubt that the Fed will cut key interest rates at its upcoming Federal Open Market Committee (FOMC) meeting in late July.
Due to weak economic news in most nations, we can expect continued rate cuts by central banks around the world in the upcoming months. On Tuesday, the Reserve Bank of Australia cut its key interest rate by 0.25% to 1%. This is the second 0.25% cut that the Reserve Bank of Australia has made in its past two meetings. I also expect that the European Central Bank (ECB) will also cut its key interest rate by 0.25%.
There are plenty of investor concerns out there – which Bryan Perry itemizes – but investors are climbing that “wall of worry” to new market highs, with an outlook for more new highs in the second half. Gary Alexander agrees, seeing hope for popular support for most of the pillars of economic freedom which underlie long-term global growth. Ivan Martchev reminds us that the first micro-rate-cut is already behind us, with bigger rate cuts to come. Jason Bodner expected a quiet holiday week but got some unexpected positive action from insider data. I’ll close with a look at the new ECB structure and U.S. economic data.
Income Mail: Stock Indexes Scaling the “Wall of Worry,” Like Sir Edmond Hilary
By Bryan Perry
A Confluence of Factors – and Plenty of Confusion
Growth Mail: Global Growth is Relatively New and Fragile – Don’t Destroy It
By Gary Alexander
These 7 Pillars of Economic Freedom Promote Per Capita GDP Growth
Global Mail: The First Fed Rate Cut is Already Behind Us
By Ivan Martchev
Valid Points from My Alert Readers
Sector Spotlight: Unexpected Positives Hidden Deep in the Data
By Jason Bodner
Where We Stand at the Mid-Year Break
A Look Ahead: A Change of Leadership (But not Direction) at the ECB
By Louis Navellier
As the World Inches Toward a Global Recession, the U.S. Remains the Oasis