Editor's note: Originally published at tsi-blog.com on October 22, 2019
[This post is an excerpt from a recent TSI commentary.]
Once an equity bear market is well underway, it runs its course, regardless of the Fed's actions. For example, the Fed started cutting interest rates in January 2001, but the bear market that began in March 2000 continued until October 2002. For another example, the Fed started cutting interest rates in September 2007, but a bear market commenced in October 2007 and continued until March 2009 despite numerous Fed actions designed to halt the price