✂️ A double cut

The US and UK central banks announced interest rate cuts, investors are risking it in the US, and a little extra sleep | [Finimize]( [TOGETHER WITH](#) Hi {NAME}, here's what you need to know for November 8th in 3:07 minutes. - Interest rate cuts landed at the same time from the Federal Reserve and Bank of England - Why the market’s recession signals got it wrong – [Read Now]( - Investors upped their bets on risky assets following the US presidential election 🥇 Get prospecting for that next investing win. Join us for [How To Tap Into Your Gold Opportunity]( and discover how to add the shiny metal to your portfolio. [Grab your free ticket]( The Wheels On The Bank Go [The Wheels On The Bank Go] What’s going on here? You wait ages for an interest rate cut, and two come along at once. On Thursday, the US Federal Reserve (Fed) and the Bank of England (BoE) both trimmed their key rates, one right after the other. What does this mean? Both central banks snipped their benchmark interest rates to about 4.75% from about 5%, but that’s where the similarities stopped. The BoE warned that it’d reduce rates only gradually from here on out – not least because it thinks the UK government’s new spending plans will juice inflation by a half-percentage point next year. Stateside, meanwhile, there’s a lot up in the air about how things’ll look next year (politically, economically, you name it), so the Fed didn’t make any grand predictions alongside its rate cut announcement. And given that the US economy’s still on the up, there wasn’t much pressure to do so. Why should I care? For markets: More is… less. The UK’s new government spending plans include jacking up borrowing, which could well push the country’s inflation back up. That’s why economists are betting that the BoE will be forced to keep its key rate on the high side, just to keep prices relatively stable. So while the experts had been predicting a minimum of four cuts next year, they’ve notched that down to three. In the US, it’s a similar story: the newly elected president and his party’s potential sweep of Congress make tax cuts and import taxes (a.k.a. tariffs) likely. Both would ramp up inflation and probably prevent the Fed from being able to shrink interest rates. Traders have done that math, and they’re betting on just four rate cuts next year instead of five. You might also like: [Why central banks are the celebrities of financial markets](. Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=The Wheels On The Bank Go&utm_campaign=daily-global-08-11-2024&utm_source=email) TODAY'S INSIGHT The Secret To Stocks’ Success And Why That Recession Still Hasn’t Happened Russell Burns [The Secret To Stocks’ Success And Why That Recession Still Hasn’t Happened]( It’s just not easy being a bear, I guess – and in recent years, it’s not been terribly [profitable]( either. The market’s far more bullish “[buy and hold](” and “[buy the dip](” investing tactics have instead proved wildly successful. So it’s worth taking a minute to look at why things have gone wrong for those gloomy bears, why the much fretted-about [US recession]( never did materialize – and the strategies you might want now. That’s today’s Insight: [the secret to stocks’ success and why the downturn still hasn’t happened](. [Read or listen to the Insight here]( * SPONSORED BY ENKY Enky gives you permission to put your feet up A good investment should be as comfortable as an armchair. Enky gets that. The Belgium-based startup has an eco-friendly [furniture-as-a-service model]( that offers stylish, easy-going pieces to workplaces, hospitality spaces, and real estate outfits. Since 2020, the company has placed [more than $5 million of furniture in the marketplace](, delivering over 100 projects. Now, [Enky is offering a new opportunity](: a chance to join a one-time crowdfunding campaign that will help it expand its scope to second-hand furniture, open a workshop, and build on its recent international expansion. The crowdfunding campaign is designed to drive the next phase of Enky’s growth plan, [with projected revenue of nearly $27 million by 2027](. And there are [plenty of good reasons to check it out]( – from the potential for high returns to the opportunity to get involved in a tangible business with proven demand. So put your feet up and take a look at [Enky’s crowdfunding campaign](. It might be just what you’ve been looking for. [Discover More]( When you support our sponsors, you support us. Thanks for that. If you want your brand featured here, [get in touch.]( Risky Business [Risky Business] What’s going on here? Between the US election results on Wednesday and interest rate cuts on Thursday, investors have been upping their bets on higher-risk assets. What does this mean? Lower US interest rates mean investors can expect slimmer returns on the safest of assets, like cash in the bank and government bonds. That’ll encourage them to buy into riskier things like stocks and crypto in the hopes of bigger profits. Not that they’ve needed a lot of encouragement this week: investors simply carried Wednesday’s post-election “risk-on” rally into a second day, as it became increasingly clear that the president-elect’s own party could have full control over the US government, removing any potential political blockers to its agenda. And making space in investors’ portfolios were bonds: they were sold off, and their yields rose (remember, bond yields move inversely to prices). Why should I care? Zooming in: Investors take their pick. Proposals to lower tax rates for companies, loosen regulations for industries, and drive local US investment should all be a boon for the country’s stocks. So banks – which represent 5% of the S&P 500 – were rallying on hopes of a less restrictive set of rules. Meanwhile, carmakers Ford and General Motors raced higher on expectations that rolled-back EV incentives and emissions standards would rev up demand for their more profitable gas-guzzlers. And in crypto, bitcoin was hitting record highs, seemingly just because the incoming president commented in favor of digital currencies. The bigger picture: Still plenty that could go wrong. A lot needs to fall into place to keep America’s risk-on rally rolling, and loads of things could derail it. Campaign pledges like global trade tariffs – if they happen – could ignite inflation or spark an all-out trade war, and the effects could range from a longer spell of high interest rates to a full-blown recession. Given how much debt the US is carrying now and the amount it could rack up in the next few years, that might be pretty catastrophic. You might also like: [How investors are playing the election](. Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=Risky Business&utm_campaign=daily-global-08-11-2024&utm_source=email) QUOTE OF THE DAY "The only journey is the one within." – Rainer Maria Rilke (an Austrian poet and novelist) [Tweet this]( Learn how to keep more of your money If you want to [hang on to more of your hard-earned cash]( this is the event for you. That’s because both [spread betting and CFDs have some serious tax advantages]( – and that can only be a win. So if that’s piqued your interest, join us and IG’s Chris Beauchamp for [Spread Betting Versus CFDs: How To Trade Tax-Free](. Beauchamp will take you through the [key differences between spread betting and CFDs](, while outlining their individual tax advantages. He’ll also look at how spread betting can [help you avoid capital gains tax]( – particularly useful in the UK after the recent hefty bump – and the next steps for trading smarter using this cost-effective option. So [grab your free ticket now]( and discover how to hold on to more of your cash. [Grab Your Free Ticket]( 🎯 On Our Radar 1. After the event. Richard Gadd on [life after Baby Reindeer](. 2. Decode the numbers behind your trades. Find out how the "Greeks" can give you an edge in [real-world market moves](.* 3. Give the gift of style. [42 presents for the design lover]( that are under $50. 4. The metaverse could change everything. Prepare yourself for a [new investing landscape.](* 5. A little fix. Just [46 minutes of extra sleep]( could be all you need to feel better. When you support our sponsors, you support us. Thanks for that. 🌍 Finimize Live 🤩 Grab your tickets... 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