đš Fed Rate Cuts Incoming: What Could Happen Next? đš
Weâre just 15 days away from the first Fed rate cut of this cycle! đâïž Hereâs what history tells us about what might come next:
đ Overlaying Past Rate Cut Cycles: 1981, 1990, 2000, 2007
- These past cycles share the same signals weâre seeing now:
- đ Rising unemployment rates
- đ 10y-2y yield curve inversion
- â ïž Economic warning signs flashing
đ Bullish Sentiment on Rate Cuts:
- Bulls believe rate cuts are good for the marketâbut itâs a mixed bag đ.
- Historically, markets pump for about 25 days after rate cuts đ, followed by an average 13-month sell-off đ.
đ§ Key Questions to Consider:
- Could we see one last pump around the cuts? đ
- Will this time be different? đ€
â ïž No Crystal Ball Here:
- Anyone claiming to know exactly what will happen is misleading you â.
- Be open-minded, review all the data, and use your best judgment. đ§ đ
Stay vigilant and prepared for all scenariosâmarkets are rarely straightforward!