Why Rate Cuts Should Scare You

08/11/2025

Rate cuts don't mean the market is going to rip higher. In fact, if history is any guide, they mean just the opposite.

So while the market is anticipating rate cuts and the economic data that could portend a Fed pause or cuts as positives, they really could instead be the alarm that indicates the market could be setting up for a marked move lower.

As you can see in the charts above and below, market bottoms generally follow Fed rate cuts. Cuts usually come just after hikes have made their way through the economy and are set to manifest in the economy (this usually takes 18 months to 24 months, something I wish I had been clearer about when I took my bearish stance on markets 18 months ago, only to be proven very wrong thus far).

But don't let rate cuts be the only signal that the market could be ready to tank. The macroeconomic data behind the scenes continues to pile up like a wreck on a highway. With the Fed in QE mode, bad news is looked at as good news. With the Fed engaged in quantitative tightening, make no mistake about it, bad news is simply just bad news.

** Information contained within this email should not be construed as Legal, Accounting, Tax or Investment advice. Patriot Gold Group is a Gold & Silver Dealer, representatives are NOT Licensed Financial Planners and do NOT give investing or tax advice.

It's Not Too Late To Take Advantage Of Our Exclusive 'Recession Protection' Gold And Silver IRA Offer.

Morgan Stanley, Goldman Sachs, UBS All Recommend Buying Gold

Gold is one of the best places for investors to be following the Trump administration's recent tariff announcements against the European Union and other major trading partners, according to the latest reports from banking giants Morgan Stanley, Goldman Sachs, and UBS.

In this environment, Morgan Stanley favors investment in gold, silver, and COMEX copper futures.

Morgan Stanley believes that the current trends in the metal market this year will continue, with upside potential for COMEX copper, gold, and silver, but they expect platinum prices to stabilize after their roughly 50% rise.

The bank has raised its Q4 target price for gold to $3,800 per ounce, supported by central bank and investment demand, a weaker dollar, ETF inflows, and ongoing geopolitical and macroeconomic uncertainty.

Goldman Sachs also reaffirmed their forecast for gold to reach $3,700 per ounce by year-end before rising to $4,000 by mid-2026, with central bank and ETF inflows supporting lofty prices — along with major off-balance sheet buying.

** Information contained within this email should not be construed as Legal, Accounting, Tax or Investment advice. Patriot Gold Group is a Gold & Silver Dealer, representatives are NOT Licensed Financial Planners and do NOT give investing or tax advice.

About Patriot Gold Group CEO Jack Hanney