It’s the Great Resilience Trade — and Wall Street insists its logic is stronger than in past manias. In the 1990s, the defence was internet productivity. In 2021, it was zero rates and the rise of the retail trader. Now: an unbreakable consumer, a real AI boom, and a White House stepping back from the tariff cliff. That narrative, months in the making, is rewarding bold bets and balanced portfolios alike.
The Federal Reserve poured fresh fuel on the Wall Street rally this week, pushing September toward the broadest cross-asset surge since the 2021 frenzy — with fear in retreat and greed unleashed.
An interest-rate cut meant to cushion the weakening labor market might once have sparked caution. Instead, it lit a fire under the risk complex, with the likes of junk bonds and shares of unprofitable tech firms advancing. Global equities hit record highs, while credit spreads tightened to levels last seen in 1998.
