Following up on our Wishy Washy post from Monday, we wanted to point out the major changes in Capital Market PARTICIPATION (traders) Structure … The most important item to take from this graph is that Active Management trading has greatly reduced. This is important because most all other trading sources are much less concerned with price because they are either largely computer driven or just mandated purchases. This can lead to dramatic over and under allocations…a story for another time!
The great news of this “Without a Conscience” participation, there are trails to watch for their actions…. Here are two glaring ones!
Interest Rates – Headed Lower – Expecting the Slow Down – Without FOMC Intervention
Note rates dropped back in the fourth quarter of 2024, before accelerating after several hotter than expected CPI – Consumer Price Index monthly reports — This recent drop in rates is on an expected slowdown, without the Jerome Powell FOMC chair posturing or actual rate movement, unlike the prior move down late last year!
Lower Mortgage Rates?
Crude Oil –
Relief at the Pump and other transportations?
So this was a little in the weeds… We could have shown a lot of other items, but many are in one way or another connected to these…
Have a Great “Market Participant Trails” Day!
John A. Kvale CFA, CFP
AI Content Authenticity: All of the following text content has been completed by myself and has not been edited or created by AI. Occasionally we do use AI for images and will note when appropriate.
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
