G.L. Fisher Capital Management

In San Diego at the LPL annual conference hearing about new strategies to help our clients retire Stonger for Longer!

💼 Wall Street has its own language and adages…

One of my favorites is "Sell in May and Go Away," suggesting that the market’s performance is typically weaker from May through October. Although there is some loose historical basis, market timing has well-documented limitations.

While these sayings may sometimes hold a kernel of wisdom, more often, they are just something that catches our attention and makes for an interesting table topic.

Here are a few others that come up in conversations on occasion…

1️⃣ "Markets Climb a Wall of Worry": This phrase means that the stock market often rises, even amid negative news or uncertainties.

2️⃣ "Stocks Take the Stairs Up and the Elevator Down": This maxim reflects the fact that stocks often rise gradually over time but can drop rapidly in a market downturn.

3️⃣ "Everyone Looks Like a Genius in a Bull Market": Soaring stocks make everyone seem like financial wizards in a bull market. Success isn't always a reflection of expertise.

Have you heard of any of these before? What do you think of these sayings?

The Fed has announced a pivot from a tight monetary policy to a more accommodating approach. Here's what you need to know:

▪️ Fed Chair Jerome Powell said in December that interest rates could be cut as much as three times this year, but he didn’t indicate when the cuts may start.
▪️ In December, he said no cuts until inflation is still heading toward the Fed’s 2% target.
▪️ During Congressional testimony in March, Powell reinforced his belief that the Fed would cut rates in 2024 but again wouldn’t commit to a time frame.
▪️ He also stressed that he wants to see more evidence that inflation is trending back to the Fed’s 2% target.

The Fed Chair has indicated that the next move for rates will be lower. So, a pivot has taken place, but the follow-through with lower rates has yet to begin.