When you look around the world in the financial markets what do you see? What I see is the punch bowl is almost empty, party goers are demanding more punch and the party promoters have no choice, but to oblige because they have been drinking the punch too.
The Federal Reserve and other leading central banks are declaring the peak in global interest rates has been reached and are readying to start the march down.
As the world economy weakens amid the U.S.-China trade war and inflation continues to undershoot the target of most policymakers, Fed Chairman Jerome Powell is set to oversee the first cut to the U.S. benchmark in a decade.
European Central Bank President Mario Draghi has also flagged action, though he may wait until September, and even Bank of Japan Governor Haruhiko Kuroda may come under pressure to join in. The People’s Bank of China has eased lending conditions but so far held fire on rates, but Australia, India, New Zealand and Russia are among those to have already injected fresh stimulus into their economies.
This is a big deal. Because I trade currencies, I’m seeing this all around the world…the big central banks of the world are cutting rates. Now is the time to put on position type trades…trades that last months/years. What comes to mind is buying cryptocurrencies, gold and bonds. I will repeat, now is the time to buy cryptocurrencies, gold and bonds. However, please don’ take my word for it…a picture is worth a 1000 words.
NOTE: the charts I’m about to show you are relative to the US Dollar.
This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.