If fed decides to cut rates then nows the time to go into equities as a matter of fact the next theme for me is equities, and whoever bought bonds/papers and kept at it from 2022 onwards till now has more than enough capital to finance their possies, they got the 1% of equity they need from bonds… That 1% rule originated from the time of low priced bond markets of the 70’s-80’s.
And like I said before the american markets are mirroring indian markets from 2022-2023 onwards, only for a longer period of time… First a DCB then launching into rocket mode but those will be few and scattered throughout then back into bond rallies with even more astronomical rates. Since murricans don’t like 5.75% as I have forecasted last year then 11-13% is acheivable over a period of time provided bonds keep on dropping then jumping which will get them closer and closer to those levels but in order to do that it’s safer to get into some equities and let the bonds cook on the back burner for some more time. It’ll take time but bond buyers will get the rates they want whether it is 5% or 11% or even 1%…
If they don’t want low bond rates then it is better to not buy them at all.