A ‘ really big, ugly selloff’ could hit market if the Fed doesn’t deliver, strategist warns

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Call of the day: If the Fed disappoints, look out below

Wall Street is about as jammed with crowded trades as it’s ever been — retail guys, mutual funds and hedgies all loading up on the same, high-profile investments, according to Bank of America Merrill Lynch BAC, -0.81% .

“The last three years have been among the most difficult ever out of 33 in the industry because we haven’t owned FAANG [Facebook, Apple, Amazon, Netflix and Alphabet’s Google]” he said, adding that he’s convinced the rally could fall apart if the Fed disappoints with its rate cuts.Such a move could happen as soon as this week, if the Fed doesn’t deliver Wednesday a quarter-point cut.

Big weekend for Hollywood with Disney’s DIS, +1.20% “The Lion King” easily topping the box office to bring its whopping 10-day total to $350 million. “Once Upon A Time... In Hollywood” also fared well, with writer and director Quentin Tarantino enjoying his biggest opening ever.

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Look out below regardless, have to explain why the cut was needed and that’s going to create another issue..... regardless, there’s going to be a reason to sell, imo! Tech especially, has huge downside risk, very little upside in the near term imo 70% cash and patiently waiting.

Really? Would you do that over a rate rise?

But we will all get a free taco!

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Source: CNBC - 🏆 12. / 72 Read more »