The longer the Fed waits to cut, the lower rates will ultimately go, but so far there's little hint of action to come.
The more I look at this market worldwide, the more I think bonds are going to rally.
There is a deep psychological element to consider that may be most important when considering the health of the economy.
It's important to take a step back and see what is happening across asset classes.
You don't need complexity to make good returns. You do need the ability to suffer through volatile times without panicking out of stocks.
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.
Can markets go higher? Certainly, but we still need to see higher prices form here on higher volumes in order to confirm that those big kids are playing ball.
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.