So stocks dropped a little in October. Ok they actually dropped a lot and all of a sudden the S&P 500 was miles away from the all those optimistic 3,000+ year end targets. And what happens when stocks drop hard? Bulls cry for the Fed to come to the rescue.
It was quite the scene.
Here’s the global market cap wiped off in just October:
$8 TRILLION. Poof. Gone. The largest drop since 2008.
So it is no wonder the Fed begging has begun. From the president on down:
“If the Fed backs off and starts talking a little more Dovish, I think we’re going to be right back to our 2,800 to 2,900 target range that we’ve had for the S&P 500.” Scott Wren, Wells Fargo.
Jim Cramer: “My main fear is that we could have a mini version of 2008 if the Fed doesn’t change course,” the “Mad Money” host said. “Our one hope? If Fed chief Jerome Powell actually starts listening to the stock market and wakes up to the damage that tariffs can do to the economy, then maybe he’ll shift gears, just like Greenspan did in ’98. Then we can bottom and even roar higher. But as long as Powell stays committed to the December hike and three more next year, … and the president stays committed to expanding his tariffs, then history says we’ve got more downside no matter what.”
Canaccord’s Tony Dwyer: “Fed needs to take its foot off the throat of the market.”
Bill Stone Avalon Advisors’ co-chief investment officer: “The one thing to watch is the Fed, the market is looking at the possibility of a policy error there — that they’ll tighten too hard.”
Merrill Lynch’s head of market strategy Joe Quinlan: “The current market rally has legs, as long as a hawkish Fed doesn’t stop it”
From the Financial Times:
…click on the above link to read the rest of the article…
