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Strategies & Market Trends : ajtj's Post-Lobotomy Market Charts and Thoughts

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To: Sun Tzu who wrote (76645)2/10/2023 2:05:23 PM
From: The Ox2 Recommendations

Recommended By
ajtj99
Lee Lichterman III

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My view is anyone who thinks the FED is going to cut by July is either totally screwy or thinks the next 3 to 4 months will turn into some kind of economic hell.

Even with soft landings and a stronger than expected US economy, I don't see how rates come down anytime soon. I think it's pie-in-the-sky thinking to believe we'll simply find our way back to 2% inflation and 3% GDP anywhere in the next few years. I think the 10-year rates are going to be above 3% for several years, which is why I see the current reading as fair, reasonable. Short term, we may see it pop into the mid 4s but longer term, 3.5 - 3.8 seems quite reasonable.

JMO
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