The markets are into record territories due to the growing expectations of a Federal Reserve interest rate cut next week and the hopes that trade tensions can be resolved. We think that a decline in interest rates will be used to fuel more upside for stocks. The Fed’s easing policies have engendered reckless risk-taking in financial markets, more leverage, greater inequality and tremendous stress on savers and the bank deposit holders. With stock market at record highs and unemployment at record lows, the Fed is about enact upon another quantitative easing which clearly shows that the Fed is in a panic mode. Historically, the first cut usually leads to the start of a serious bear market (see 2000 and 2007). Once they stop cutting rates, it’s the bottom of the bear market when you want to buy. History shows that when the Fed cuts, stocks decline. When rates stay flat or they hike rates, stocks rise. That is contrary to the fables you hear from many analysts. As stocks continue to march higher despite today’s geopolitical and economic dangers, the markets are climbing walls of worry, which means investors will just keep on buying stocks as long as the fears are not realized. This wall of worry reflects a maturing cycle, when potential upside still exists for rest of this year but weaknesses start to appear in the fundamentals.