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BREAKING: The US financial conditions Index is down to 98.3 points, the lowest since early 2022.
Financial conditions have been in a firm downtrend over the last 3.5 years.
This comes as the Fed has cut rates by 175 bps since September 2024, to 3.75%, the lowest since October 2022.
Furthermore, the US Dollar has fallen -12% in 12 months, to near the lowest since February 2022, loosening financial conditions even further.
All while US investment-grade corporate credit spreads have tightened to their lowest since 1998.
As a result, financial conditions are back down to pre-interest rate hike levels seen in March 2022.
Asset owners are winning.

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