This is a short message today’s morning you can Sign up Each morning to get the receiving together with:
To this day, I am surprised by the storyline that develops in markets.
Color Me surprised how quickly the markets recovered after the “liberation day” massacre. Tariffs? Who cares about? Please more NVIDIA (NVDA) stock, please!
Also add me to the surprised column of how quickly the market has bounced since 2009. March The lowest downturn. I remember bright that I was looking at divine economic data for the majority of 2009. … and rally markets.
Today I come back with the latest hand -chewing (albeit smiling) narrative that develops among investors: 2026 will be a Monster The year reduces the interest rate, so buy stock fists today! You didn’t read it wrong, friends.
2025 Five months – months of earnings, tariffs, tax account term, and, of course, many negative surprises – still, investors are already mentioned in 2026.
I am not excited by you, and I am crediting Morgan Stanley for winning this developing story last week because I have heard his chirping for a few weeks.
Podcast: In the latest stock market melting
Morgan Stanley said her economic team was 2026. Seven tariff reductions are seen-“dynamics, which will probably be the second half wind side wind, for hint rates and rating”.
Mike Wilson, a team, followed the chief investment strategist, noted that “there are already signs that the stock market is starting to appreciate it now.”
Wilson continued: “Our work shows that Fed’s cutting cycles have strong ownership results, even if this tail wind starts a discount prematurely.”
Remember that everything we have heard from Fed’s chairman Jerome Powell in recent weeks shows that the rate reduced later this month or September is not guaranteed. Strong June The works report even more excited the image.
However, you create a spare truck with seven speed reductions in 2026.
Read more: How Fed Tariff Solution affects your bank accounts, loans, credit cards and investments
I have to give my cover to veteran Charles Schwab Strategist Liz Ann Sonders to repel this image.
“So I am a bit contradictory [rate cut view]; I think some of the reasons if you wanted to specify the fundamental reasons why the market did as well as it did, in fact, the Fed does not reduce interest rates. And this is because the basic conditions related to their double authorization do not mean that Fed needs to move to lighter policy, “said Sonders about the opening offer of the Yahoo Finance (video above).