The market's Pavlovian (and recently bullish) reaction to lower interest rates may be wrong
Anything weak is a positive to be excited about and anything strong is a nightmare because that might stiffen Powell's resolve to keep rates where they are instead of cutting them.
This is why rates rose the day the Fed made such strongly dovish comments, and how you should manage your fixed income portfolio in response.
Powell may have his hands tied behind his back, as consumer spending, inflation and labour market indicators are still resilient.
This may be a case where the short-term damage to markets may be for the best in the longer run.
Your retirement account would be much further ahead if you ignored asset allocation guidelines and simply owned 100% stocks over your lifetime.
The action Thursday did little to change the big picture.
A high level of cash is your best bet right now, but stay optimistic.
To get rates even lower, we do probably need the economy to get slower.
The market is under intense pressure, and our job is to stay out of the way and protect capital.