Is the Fed on the verge of sparking a stock-market ‘melt-up’?

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The Federal Reserve is almost certain to cut rates at the end of July — but don’t expect a melt-up, usually marked by a powerful rally followed by a...

The Federal Reserve is almost certain to cut rates at the end of July — but don’t expect a melt-up in equities, usually marked by a powerful rally followed by a substantial selloff, says Mark Haefele, global chief investment officer at UBS Global Wealth Management.

At the conclusion of the Federal Open Market Committee’s two-day gathering July 31, Wall Street is betting a quarter-of-a-percentage-point rate reduction of the federal funds rates which currently stand at a range of 2.25%-2.50% at the conclusion of the Federal Open Market Committee’s two-day gathering July 31.

To be sure, the analyst isn’t predicting a melt down in stocks either, but says that the tenuous state of the market lends itself to maintaining exposures to stocks, but with the caveat that second-half returns will be more modest than the market has thus far seen.

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How can people keep describing as 'healthy' a US market with falling manufacturing, falling transport use (e.g. less 'stuff' moving), falling car sales (Tesla exception) falling new home sales ? Falling % rate? increasing debt?

That's a pretty dumb question don't you think? SPX up over 21% and its only July. You wouldn't call that a melt-up? Its happening. Change your name to marketblind dot com if you're not seeing it.

It doesn't really matter now what FED would do. FED couldn't sustain expansions in the past, no matter how hard they tried... All past 'expansions' - Market Bubbles have been burst resulting in Recession! What makes it different this time? 🤔

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