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What Do Fed Doves Foretell?

John Blank
Delta Air Lines (DAL) beat estimates on both top and bottom lines: 96 cents per share topped the Zacks consensus of 90 cents, while revenues of $10.47 billion.

The latest FOMC meeting is in the rear view mirror now with the FED not raising interest rates. And, in a sharply dovish turn from policy projections of just three months ago, has also indicated that no more hikes are in the cards for this year. Our Chief Equity Strategist and Economist, John Blank, joins me now with more.

1.    Is this a surprise to you to see rate hikes removed for 2019?

2.    We currently have an inverted yield curve in the bond market. Typically that’s not a positive sign for the economy. As a result, you’re focused on the 2 and 5 year rates. Why are they important here?

3.    What would have to happen for the FED to change its stance on rate hikes?

4.    So, might this be signaling a slow growth scenario versus a full blown recession on the horizon?

5.    What else, if anything, is the market telling us about our economy independent of what the prognosticators may be saying?

6.    So, have we been living in an illusion of economic stability up to now?

7.    Is global economic growth the catalytic event that will spark renewed growth here?

8.    Can you put a timeline on this?

9.    Stockwise, FedEx may have gotten hammered lately. But you see promise in three Air Freight and Cargo stocks, namely Atlas Air (AAWW), Avianca Holdings, S.A. (AVH) and Radiant Logistics (RLGT).

Another interesting economic assessment from our Chief Equity Strategist & Economist, John Blank. With John, I’m Terry Ruffolo.


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