Excerpt from Louis Navellier's Marketmail - 6/25/2019
The big news last week was the Federal Open Market Committee (FOMC) statement on Wednesday, which removed the word “patient” and set the Fed up for potential 0.25% key interest rate cuts at its July and/or September FOMC meetings. Interestingly, the FOMC statement also acknowledged that there are “muted inflation pressures” and that “business fixed investment has been soft,” which will cause the Fed “to act as appropriate.” Seven of 17 FOMC members now forecast two 0.25% rate cuts, while eight FOMC members forecast just one 0.25% rate cut. Only St. Louis Fed President James Bullard wanted to cut rates immediately. As a result, I expect that the Fed will likely cut rates by 0.25% at its July meeting.
At his press conference on Wednesday, Fed Chairman Jerome Powell cited slowing global growth and lower interest rates as influences on slower U.S. economic growth. In fact, after his press conference, the 10-year Treasury bond fell below 2% in overseas trading for the first time since 2016. There is no doubt that persistent global capital flight to the U.S. is continuing to push Treasury yields lower. The market liked the Fed’s report and soared to new highs on Thursday, capping the best June (so far) since 1955
Bryan Perry leads off with an “off the political grid” income opportunity in healthcare REITs with a special focus on healthcare facility management. Gary Alexander offers a time-tested user’s guide to the upcoming doomsday predictions, along with an antidote to the fear politicians intend to engender. Ivan Martchev has long predicted that the junk bond market indicates no recession and a strong market, which June has justified. Jason Bodner shows how careful stock selection is more vital at times like this, when the markets are trading at new highs. Then, I’ll return with a focus on the global news last week.
Income Mail: A High Yield Bright Spot in the Healthcare Sector
By Bryan Perry
The Opportunity in Healthcare Facility REITs
Growth Mail: A User’s Guide to Doomsday Election-Year Predictions
By Gary Alexander
The Vast Gulf Between Wars and “Rumors of War”
Global Mail: It’s Too Early to Call a Recession
By Ivan Martchev
Junk Bonds, Yet Again, Called the New Stock Market Highs
Sector Spotlight: Perception vs. Reality in Nature and the Markets
By Jason Bodner
Want an Oasis in the Desert? Try U.S. Stocks.
A Look Ahead: Europe Moves to Sink the Euro, Lifting Gold to $1,400
By Louis Navellier
Trump’s Near Miss on War with Iran