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July 11, 2019 | Party On, Wall Street!

Rick Ackerman

Rick Ackerman is the editor of Rick’s Picks, an online service geared to traders of stocks, options, index futures and commodities. His detailed trading strategies have appeared since the early 1990s in Black Box Forecasts, a newsletter he founded that originally was geared to professional option traders. Barron’s once labeled him an “intrepid trader” in a headline that alluded to his key role in solving a notorious pill-tampering case. He received a $200,000 reward when a conviction resulted, and the story was retold on TV’s FBI: The Untold Story. His professional background includes 12 years as a market maker in the pits of the Pacific Coast Exchange, three as an investigator with renowned San Francisco private eye Hal Lipset, seven as a reporter and newspaper editor, three as a columnist for the Sunday San Francisco Examiner, and two decades as a contributor to publications ranging from Barron’s to The Antiquarian Bookman to Fleet Street Letter and Utne Reader.

The Dow closed above 27,000 for the first time on Thursday, giddy over the Fed chairman’s recent embrace of more easing.  In two days of testimony before Congress, Powell left little doubt that the central bank is about to lower interest rates by 25-50 basis points. However, only a moron could believe this will mitigate the impact on the U.S. economy of slowdowns in Europe and China that are already well under way. What it will do is goose U.S. asset prices so that they are even more insanely overvalued than they are now, which in turn will attract flight money from Europe and China. Sounds like a perpetual motion machine, right? We all know that such a contraption does not exist, and that pumping U.S. stocks into the ionosphere at a time when business around the world is slowing dramatically is a recipe for disaster. Party on, Wall Street!

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July 11th, 2019

Posted In: Rick's Picks

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