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Interest rate cuts during a bubble? Buy stocks and copper says this major broker
Major broker Citi believes the Federal Reserve, the European Central Bank (ECB), and the Bank of England (BoE) are each on track to start cutting rates by the middle of the year – “financial conditions be damned”. As rates start to come down, says the broker, an “inflating tech bubble will add fuel to the fire”. Rate cuts into bubbles? Rather than run for the risk-aversion hills, Citi loves the smell of irrational exuberance in the morning! They intend to “remain significantly long equities” until one of two things occur: They see “some of the signs that typically appear at a bubble top”; or Their ... (full story)