TSX:NWH.DB.G - Post by User
Post by
TheBridgeon Nov 06, 2023 1:40pm
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Post# 35719790
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TrendInteresting comments this morning in his article "What Joe's Interested in This Morning" by Joe Wiesenthal (Bloomberg) which could have a bearing on the trend that NWH.UN might be heading in.
Just included what drew my attention:
"Last week was when the talk of Fed rate cuts really started to become real.
While the Fed didn't make any formal policy changes at its meeting on Wednesday, the Powell press conference was widely seen as having a dovish tone to it. He talked about the risks in the economy becoming more balanced. He talked up progress that we've seen towards returning to the inflation goal. He talked down a jump in inflation expectations that was seen in the most recent UMich sentiment report.
Meanwhile, the economic data for the most part all came in on the cool side. Friday;s jobs report wasn't terrible. But the number of new jobs created did come in lower than expected. And there were downward revisions to the prior two months. The monthly wage growth numbers came in lower than expected. And the unemployment rate ticked up to 3.9%. We also saw mediocre numbers in other measures last week, including ISM manufacturing, in which the employment sub-index fell into contraction territory.
In a note to clients yesterday, Tim Duy of SGH Macro Advisors wrote, "With it increasingly clear that the Fed reached the peak of this cycle back in July, we can begin wargaming the first rate cut of the cycle."
If we are going to get rate cuts sometime in the coming year, then the interesting question now is whether such cuts will be effective, and whether the FEd can foam the runway just enough to make the landing smooth and soft.