Rates Could Go To 6% And Stay There For "Years"
It would be a situation where we are all but assured massive destruction not only to the economy, but also to the stock market. Here's why it's possible.
Friend of Fringe Finance and well known financial news contributor - as well as 38 year veteran of markets - Kenny Polcari has been kind enough to share his most recent thoughts on the market with our readers.
For those who aren’t familiar with Kenny or don’t recognize him from TV, he is Managing Partner of Kace Capital Advisors and Chief Market Strategist at SlateStone Wealth. He started his career on the floor of the New York Stock Exchange (NYSE) as an institutional broker back in the early eighties when the march of electronic trading was already taking its first steps, and the great bull was first learning to run.
Here’s his take on markets heading into the Friday, February 10, 2023, trading day:
The post has been lightly edited for punctuation and grammar.
The axe continues to swing as more and more companies announce layoffs.
Micron was the latest to announce a 10% reduction in force while suspending any bonuses for 2023. They join Disney, Yahoo, Zoom, Dell, PayPal, Affirm and Fox Corp, as these companies use the ‘weakening economic environment’ as a reason to clean house. Meanwhile, the Fed continues to hint at even higher rates (now teasing something with a 6 in it) all while the media continues to dissect Powell’s speech on Tuesday.