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What stocks to buy for new rate cut cycle

David Llewellyn-Smith
Tuesday 4 June 2019
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Via the excellent Damien Boey at Credit Suisse:

We have just published our latest thoughts on global style rotation and its implications for Australian stocks.

The US yield curve has meaningfully inverted. 80% of the time, this foreshadows a recession around the corner. Mechanically, it means that investors are starting to price in rate cuts.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.