Source: Marketwatch

“Welcome to the calm before the storm….Our call of the day, from Hussein Sayed, chief market strategist at broker FXTM, agrees, as he says it’s time for investors to start holding Wall Street itself responsible for further stock market gains. ‘The boost provided to equity markets from the shift in central banks seems to be exhausted with the S&P 500 standing 1.7% away from an all-time high. Investors hoping for an interest rate cut may not see one coming any time soon, suggesting that they shouldn’t continue betting on monetary policy to push equities further,’ he told clients Thursday. Pundits have been telling us for a while that central banks can’t keep rescuing this stock market after years of easy-money policies, though the Fed managed to do just that at the start of the year. In Wednesday’s minutes from its March meeting, the U.S. central bank showed no indication of any cuts to come, with some members even saying they’d consider a hike, depending on data….’The index has risen 15.2% so far year-to-date, and for the rally to be sustained, investors need assurance that we’re not going to hit an earnings recession. A dovish Fed won’t be enough to keep the party on,’ he says. Last word goes to asset manager Guggenheim Investment, which told clients in a recent research note…stocks could get crushed due to lofty valuations and one more thing – lack of central bank firepower.”

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