ACTV - Fed Rate Cuts - A Signal To Sell Stocks And Buy Bonds?
2024-07-16 09:20:00 ET
Summary
- With both economic and inflation data continuing to weaken, expectations of Fed rate cuts are rising.
- Since January 2022, the market has repeatedly rallied on hopes of Fed cuts and a return to increased monetary accommodation.
- Given recent history, why should investors not expect a continued rally in the stock market when Fed rate cuts begin?
- As we approach the first Fed rate cut in September, it may be time to consider reducing equity risk and increasing exposure to Treasury bonds.
With both economic and inflation data continuing to weaken, expectations of Fed rate cuts are rising. Notably, following the latest consumer price index ((CPI)) report, which was weaker than expected, the odds of Fed rate cuts by September rose sharply. According to the CME, the odds of a 0.25% cut to the Fed rate are now 90%....
Fed Rate Cuts - A Signal To Sell Stocks And Buy Bonds?