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.(The Kobeissi Letter)