Strategy Report
Why Rate Cuts Are Bad News
It is a big mistake to think that rate cuts or lower bond yields will ease credit conditions. Quite the contrary. After an aggressive tightening of monetary policy, the first rate cuts always coincide with much tighter credit conditions. We discuss the implications for credit, government bonds and equities. Plus, we find a startling anomaly in equity sector performance.
BCA Research | Counterpoint
A global macro strategy which uniquely synthesizes macroeconomics with psychology, behavioural finance, non-linear systems, complexity, and fractal analysis.
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