Americans are sitting on a record $8 trillion in cash.
That is fear and firepower in one number. Money markets pay about 4%, so nobody feels dumb waiting given the equity risk premium.
The Fed changes that. Cut rates, that 4% shrinks, and $8 trillion starts hunting for more than 4%. It gets pushed out the risk curve into stocks and bonds.
That is the fuel under every dip. This much cash is not going to sit still for very long.
@masterpiece527 Could you please mention the time frame because last time you said probably we finish the down side,and my was flashed out in 2 hours on Friday