Fed Chair Signals Rate Cuts Ahead, Markets Zoom Higher | Lance Roberts

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Jerome Powell just made his long-awaited speech at Jackson Hole and sent a strong signal the Fed will start cutting interest rates due to increasing concern over growing economic weakness.

The markets, little surprise, took this as fantastic news and practically every asset class rose sharply in price.

Is this sustainable?

Assets, after all, are valued based on expected future earnings.

If the economy is slowing, shouldn't that bring valuation multiples *down* not *up*?

Lance Roberts and I discuss that in depth today, as well as where inflation, earnings estimates and the housing market are likely headed.

For everything that mattered to markets this week, watch this new Market Recap.

#federalreserve #interestrates #labormarket

0:00 - Jackson Hole Symposium and record August options expiration
3:07 - Risks to earnings from recent economic data
4:02 - Market reaction to Powell’s speech, expectations of rate cuts
11:45 - Steve Hanke’s inflation outlook and quantity theory of money
15:59 - Bond yields debate: Economic growth vs. tariff uncertainty
19:59 - Money supply growth relative to GDP and inflation
27:29 - Currency devaluation and wealth preservation strategies
32:07 - Wealth gap and inflation’s impact on asset owners vs. non-owners
34:02 - Alternative 2008 scenario: Letting banks fail
43:14 - Role of government in economic resets, infrastructure investment
46:05 - Risks to earnings due to slowing economic activity
56:19 - ETF flows: Retail buying vs. professional selling
1:04:59 - Housing market correction and its economic impact
1:11:30 - Demographic trends in housing: Boomer sell-offs
1:13:48 - Recent trades and Simplevisor thematic models
1:19:14 - Grace under pressure: Handling adversity in life and markets
1:34:05 - Thoughtful Money Fall Conference announcement, October 18th
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