Interest Rate Cuts Just Changed Everything! | Michael Lebowitz & Adam Taggart

The Fed dropped the Federal Funds Rate by 50 basis point this week, ushering in a new monetary regime. Investors need to the know that the playbook has changed.

Delivering what sounded like a "mission accomplished" press conference this week, Fed Chair Jerome Powell is projecting confidence that inflation is nearly beaten, unemployment remains low, and economic growth is solid. He doesn't see recession as a visible threat here.

So has the Fed indeed achieved a soft landing?

Or... is the large rate cut a sign the Fed is actually worried it's already behind the curve?

I discuss this with portfolio manager Michael Lebowitz. He suspects the Fed is worried, and for certain he thinks that the switch to cutting rates has changed the rules for investing.

In his words: now is the time to re-evaluate what you own. How will it perform in an era of falling interest rates?

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

#interestrates #inflation #recession
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[kameskettles]

Michael is one of the most level headed analysts out there. Love hearing what he has to say.

[ElisaOKeefeSmith]

When Powell was asked about housing market affordability which they completed disregarded when cutting rates, he stuttered so badly, and passed it off to the government. Buyers aren’t getting back in because prices are ridiculous. People would prefer price decrease and to keep rates the same. I thought Powell was doing good staying the course despite pressure, but ultimately he shows himself to be weak, caving to pressure!!! Totally lost respect for Powell on this decision! How about letting a recession naturally happen and stop interfering. By interfering they kick the can down the road and our kids are being stolen from. How about our generation suck it up a bit. They operate in the short-term, never the long term. The trend for rates was never low, only the last 12 years. Any more consequential inflation and there will rioting on the streets. They need to look at inflation over 5-10 years. That’s the real truth.

[jaynawilliams]

Yeah, if we strip out shelter, energy, food and transportation, we're golden.

[Nicehousecrappycar]

I have always enjoyed hearing what Michael has to say.

[CS]

We love Michael on a Saturday morning. How about at least once a month having Michael on instead of Lance?

[SamBideau]

Transfer of wealth usually occur during maket crash, so the more stocks drop, the more I buy, in the meanwhile I'm just focused on making better investmnts and earning more as recession fear increases, apparently there are strategies to 3x gains in this present maket cos I read of someone that pulled a proft of $350k within 6months, and it would really help if you could make a video covering these strategies.

[rpha]

I can listen to Michael all day! Full of knowledge.

[georgedavid]

Get the Wall Street hedge founds out of the housing market! Houses are for families, not Wall Street speculation.

[markmanning-ow]

I learn a lot every time Michael appears on your show. I really like his ability to explain the workings of the bond markets....

[ResmithSR]

Adam, I have to admit this 50 bps rate cut is a total life changer for me. I really don't know how I'm going to handle all the savings and difference it's making for my current economic situation. 😂

[ALF-whin]

This guy really knows how to talk in a circle.

[taratong]

I really enjoy when you have Michael on!

[jamedmurphy]

Turned off once this person said inflation is heading to 2%

[Blaircpa]

you didn't go to the grocery store with me this morning... inflation not coming down much... lol

[saraking]

I live in WI and any of the factories that have to deal with automobiles and parts all laid off this past week. At least 20% of their workers are laid off now. The jobs is going to tank

[CereneSetliff]

Michael Lebowitz is one of my favorites. He’s so calm and logical.

He’s right about inflation changing decisions even for those who are able to afford higher prices. This is exactly our experience.

I am amazed JP thinks shelter costs are declining or will decline. Home affordability is the issue of our day. I can cook my own meals and make cuts to my grocery bill, which are not as permanent (eg, I can buy filet mignon once a month instead of twice a month). If I want a house, it’s so much harder to mitigate - the options are a longer, more miserable commute, a lousier neighborhood, and/or a smaller house, all permanent. Or we rent, which is not a solution. It’s all hypothetical for those of us living in nice houses we bought 10 years ago with 2% mortgages until we are faced with relocation (as we are).

[nonexistent]

"All Lance and I do is analyze risk/reward, " ...Lance "We love Costco at a pe of 40-50 and are buying. We love Nvda 5x off its recent lows and are buying." Me: k do you really analyze risk/reward of companies or are you more driven by career risk/reward?

[robertjosan]

Rates cuts and increase are secondary effects, it’s M2 money supply expansion/contraction that primarily affects everything; the FED is not in control because data is lagging by nature, and this recession is baked in the cake regardless what the FED does, it’s too late

[theinflationsituation]

Really like Mr. L. Much easier on the ears than Lance yelling. 🤫

[johnweibel]

I understand bonds intellectually. When you search for them in Fidelity the data points are confusing in regards to par, yield, coupon, etc. I mean why the 1st on the list instead of the 5th?