Well, well, well, the Federal Reserve has done it, they signaled a potential rate cut for September this year, so far the index markets, crypto markets and many assets have responded positively to this news. This was to be expected.
What do I expect will happen in September, what I am expecting is a small cut, at maximum 0.5 percent however likely just a 0.25 percent cut in my opinion, bearing in mind this could just be another dance move from the federal reserve, meaning they may hold again in September until the next month. Either way, the beginning of some cuts is inevitable now that they have signaled it soon.
Overall I am not expecting huge cuts like a lot of other analysts, I am expecting slow and steady for a couple of years with no dramatic drops in rates, however I may be wrong, what do I suggest people do now with their portfolio ( just my opinion ), well, now is a good time to start positioning with part of your portfolio if you have not done so just yet for a slightly lower rates world, add a bit more to assets like $BTC and crypto, strong stock indexes ( like the S&P 500, Nasdaq, ASX200, etc ), gold and silver. Essentially add a bit more cash to them ( if you have cash holdings sitting on the side ).
Moving to a easing phase will positively effect many assets in particular indexes and risk on assets as it allow more money to move around the economy more easily as debt holders get a bit of relief from higher rates. Those debt holders will now have a bit more room, referring to money to invest. Also lower rates on cash deposits will encourage people to start to seek yield or gains elsewhere for their money and right now their is a lot of money on the sidelines still.
If you still have a decent cash position, now would not be a bad time to put some of it into a locked term deposit to lock in those higher interest rates ( that way lower rates will not impact it for that duration ) with monthly payouts while those products from the banks are still high for a year or similar, this is only for cash that you do not intend to invest soon or in the near future.
Of course, this is just an opinion, up to you what you decide.
