\u201cI don\u2019t think we will have a bubble until the consensus declares there is no bubble and there is no risk and then that\u2019s when we\u2019re likely in a bubble. But I think a lot of folks raising the prospect that this is a bubble means it\u2019s still early.\u201d <\/em><\/p>\nAccording to Lee, if the Federal Reserve doesn\u2019t cut rates, it would pose a threat to the stock market\u2019s strength. However, Lee says there is a higher-than-expected chance that we\u2019ll see rate cuts as soon as March.<\/p>\n
\u201cIf the Fed doesn\u2019t cut, I think it would pose quite a lot of risk for the stock market. I don\u2019t think the Fed is going to hesitate just because the stock market has risen\u2026 <\/em><\/p>\nThe Fed\u2019s policy rate of close to 5.5% is the highest policy rate in the world for any developed country\u2026 I think the bond market itself is telling us that the Fed is overly restrictive right now\u2026<\/em><\/p>\nI think the probability of cutting in March is higher than what\u2019s being priced in and a lot of it will depend on what February\u2019s CPI (consumer price index) looks like, which comes out March 12th, but we think there are some anomalies in the January CPI, including poor seasonal adjustment\u2026 <\/em><\/p>\nIf those start to show improvements, I think whatever sort of hot CPI we saw in January, the repricing reverses to a large extent.\u201d <\/em><\/p>\n