Can September “Get Right”
***FINOMGROUP.COM EXCLUSIVE POST, BY @SETHCL*** A financial market resource for the every-day investor and trader.
The first rate cut is out of the way, but most were denying the majority probability spelling out a 50bps cut for the first rate cut of the easing cycle. While the Fed Fund Futures clearly indicated a 65% probability of a 50bps rate cut to be announced by the FOMC Wednesday, market participants allowed themselves to doubt what history clearly outlined, and that is this: “Every single time Fed Fund Futures indicated a greater than 60% probability of action to be taken by the Fed on the day of the FOMC announcement, that is exactly what the Fed announced; EVERY. SINGLE. TIME.” Again, history dictates and investors do themselves a disservice when they deny and doubt the historical data.