The 'Double Bubble'

Lance Roberts33.6K FollowersFollow5ShareSavePlay(22min)CommentsSummaryThe FOMC cut the federal funds rate by 25 basis points to a range of 3.50% to 3.75%.The Fed raised its projection for 2025 GDP and increased the forecast for 2026 to approximately 2.3%.Market participants enter the week with several critical macroeconomic releases and a modest earnings slate that could drive volatility as year‑end positioning accelerates.After hitting more extreme overbought conditions heading into October, the market has continued to consolidate, working off some of that state. honglouwawa/E+ via Getty Images Market Brief – “When Doves Fly.” The Federal Reserve’s FOMC meeting this past week delivered a deeply dovish outcome for markets. The FOMC cut the federal funds rate by 25 basis points to a rangeThis article was written byLance Roberts33.6K FollowersFollowAfter having been in the investing world for more than 25 years from private banking and investment management to private and venture capital; I have pretty much "been there and done that" at one point or another. I am currently a partner at RIA Advisors in Houston, Texas. The majority of my time is spent analyzing, researching and writing commentary about investing, investor psychology and macro-views of the markets and the economy. My thoughts are not generally mainstream and are often contrarian in nature but I try an use a common sense approach, clear explanations and my “real world” experience in the process. I am a managing partner of RIA Pro, a weekly subscriber based-newsletter that is distributed to individual and professional investors nationwide. The newsletter covers economic, political and market topics as they relate to your money and life. I also write a daily blog which is read by thousands nationwide from individuals to professionals at www.realinvestmentadvice.com.Quick InsightsHow does the Fed's dovish pivot impact market liquidity and risk assets?The Fed's $40B/month Treasury purchases will elevate liquidity, supporting risk assets and providing a tailwind for equities into next year.What are the implications of Powell's comments on employment data reliability?Powell indicated payrolls may overstate job growth by 60,000/month, suggesting labor market contraction and increasing the likelihood of policy prioritizing employment stability.What technical signals should investors monitor in the S&P 500 after the rally?While the S&P 500 remains bullish and broke all-time highs, light volume and weakening momentum indicators like RSI suggest caution near the 6850–6900 resistance zone.Recommended For You