The Fed is about to cut rates for the first time since 2008 as the trade war is weighing on economic growth. Are the rate cuts truly needed to support the economy or is the Fed under political pressure to appease the White House? Last time, the Fed cut rates in 1998 to prevent a slowdown caused by the Asian currency crisis. We all know what happened after the cuts.
This time is very similar to the 1998 rate cuts. The economy is not weak and the rate cuts can only create asset bubbles like easy money always does.
Short term, it is over bought with extreme low volatility. A summer selloff is still on the radar. This selloff will create the last opportunity to get in the market before a grand bull market unfolds.
Long term, this market still has room to run.