Wells Fargo Predicts Rate Cuts in 2024 – But It's Going to Be a Nail-Biter!

Wells Fargo has taken a peek into their crystal ball and sees the Federal Reserve cutting interest rates twice in 2024. This prediction comes as inflation seems to be cooling down, making the journey to that magical 2% target a bit clearer. In May, core inflation dropped for the second month in a row, which is a big reason for their optimism.

In their latest investor note, Wells Fargo mentioned they're pretty confident the Fed will start lowering rates before the end of the year. They foresee two small rate cuts, one in September and another in December. But here's the twist – it's going to be a close call whether we get one or two cuts. Imagine waiting for a game-winning shot in the final seconds!

Now, let's talk inflation. Picture it like your favorite streaming service dropping new episodes. Wells Fargo thinks inflation will slow down, like a show releasing episodes at a steady pace. They expect core inflation to increase by just 0.2% each month for the rest of the year, compared to 0.3% earlier this year. It's like your spending is finally getting a bit of a break!

Meanwhile, the stock market had a bit of a rough start on Friday. Just like hitting snooze on your alarm, sometimes the market needs a moment to adjust.

Comments

5 SGX Stocks with Dividend Yield Higher than 5.4%

5 Singapore Stocks with High Dividend Yields: Get Steady Income! If you enjoy getting a steady stream of extra cash, then dividend stocks are for you! These are companies that pay you part of their profits just for holding their shares. However, not all dividend stocks are created equal. Some offer higher dividend yields, making them more attractive. Let's take a look at five Singapore stocks that offer attractive dividend yields of 5.4% or more. 1. PropNex Ltd (SGX: OYY) PropNex is a big name in real estate, offering services like real estate brokerage, training, and consultancy. As of February 2024, they had 12,233 sales professionals helping people buy and sell homes. Even though 2023 was tough for PropNex, with revenue falling 18.6% to S$838.1 million and net profit dropping 23.3% to S$47.8 million, they still managed to generate S$57.5 million in free cash flow. They also declared a final dividend of S$0.035, bringing the total dividend for 2023 to S$0.06. This gives PropNex ...

The US Dollar's Dominance Explained (comprehensive)

The World's Favorite Currency The US dollar is the closest thing the world has to a global currency. It is the preferred choice for most international transactions and is held as a reserve currency by many countries, whether friendly or hostile to the US. The dominance of the dollar began in earnest after World War II when the US emerged as a global superpower. Investors trust the dollar and US assets, such as US Treasuries, because they are seen as safe places to store wealth in both good times and bad. This trust is underpinned by the strength and stability of the US economy and its laws. Why Is the Dollar So Dominant? 1. It’s Big The size of the US economy is a primary reason for the dollar's dominance. The US economy is massive, almost as large as the economies of China, Japan, and Germany combined. This economic heft is supported by the largest and most liquid capital markets in the world. US stock markets, home to many of the world's wealthiest and most innovative com...

Cisco Systems: An Exciting Investment Opportunity

Cisco Systems (NASDAQ: CSCO) was once a tech giant, peaking at $64 per share in 2021. Today, it trades around $45, which could mean it’s undervalued. This might be the perfect time to invest, especially with exciting growth prospects in AI, humanoid robots, and connected devices. Why Cisco Is Attractive Now Strong Financials • Earnings Potential: Analysts predict Cisco will earn $3.70 per share in 2024, dip slightly in 2025, and bounce back to $3.83 in 2026. This suggests solid growth. • Low Valuation: Currently trading at about 12 times its estimated earnings for 2024 and 2026. In contrast, the market trades at over 20 times earnings, making Cisco seem like a bargain. • Solid Balance Sheet: Cisco has $33.21 billion in debt but also holds $19.52 billion in cash. This financial strength allows for increased R&D, higher dividends, or strategic acquisitions, reducing risk for investors. Attractive Dividends • Current Yield: Cisco offers a quarterly dividend of $0.40 pe...

Underdog Investors

Search This Blog