“The fact that the trend is loosening monetary policy is more important than whether they’re going to cut one or two times this year.” – 04:01
Eddie Ghabour, CEO & Co-Founder of Key Advisor Wealth Management, joins Remy Blaire to discuss the current state of the U.S. stock market, which is opening positively with the Dow up by about 200 points, alongside gains in the S&P 500 and Nasdaq. The conversation begins with an overview of the ongoing government shutdown, now entering its 10th day, and the implications it may have on the economy. Remy highlights that Wall Street is closely monitoring the situation, particularly how the shutdown could affect corporate earnings and the anticipated AI-driven economic boom.
Eddie draws parallels between the current market conditions and the internet boom of the late 1990s, asserting that the present AI boom is real and will likely continue to drive markets higher. He explains that while bubbles can be concerning when they burst, they can also present significant opportunities for investors while they are on the rise.
The discussion shifts to the recent Fed Minutes and expectations for potential interest rate cuts. Eddie emphasizes that the duration of the government shutdown will significantly influence the number of rate cuts anticipated this year. He suggests that regardless of whether there is one or multiple cuts, the overall trend of loosening monetary policy is what the market is focused on.
As the conversation progresses, Eddie anticipates that any market dips in October or November will be aggressively bought, as many investors are currently positioned defensively. He discusses the dynamics at play, including the strength of the dollar and the current overbought conditions in the market.
Eddie identifies key asset classes and sectors to watch as the market moves into 2026, including small caps, Bitcoin, financials, and technology. He believes these sectors will outperform the S&P 500 and encourages investors to buy on dips.