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February 28, 2020 | Sri-Kumar: Fed to Cut Rates, Bear Market Likely to Last 6 to 9 Months

Danielle Park

Portfolio Manager and President of Venable Park Investment Counsel (www.venablepark.com) Ms Park is a financial analyst, attorney, finance author and regular guest on North American media. She is also the author of the best-selling myth-busting book "Juggling Dynamite: An insider's wisdom on money management, markets and wealth that lasts," and a popular daily financial blog: www.jugglingdynamite.com

Falling global growth and risk-appetite are boosting the price of our bond holdings and driving down interest rates further on safety-seeking capital flows.  At this late point in hyper-extended credit and market cycles, more rate cuts and quantitative easing are likely to boost bonds further, but not avoid an overdue bear market in stocks.  Sri-Kumar explains in this clip.

Komal Sri-Kumar, president and founder of Sri-Kumar Global Strategies, predicts the Federal Reserve will cut rates three times in response to the stock market sell-off.

Here is a direct video link.

A six to nine month bear market is average when valuations start from historically average levels.  Today, starting from the highest valuations in history, significantly beyond the average cycle top, an ‘average’ bear market in duration and depth (-25%) would be an unusually mild outcome.

Here is direct video link to part two.

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February 28th, 2020

Posted In: Juggling Dynamite

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