The Fed's recent rate cuts have sparked excitement in the stock market, with the S&P 500 hitting new highs! đ Historically, stocks perform well after rate cuts, but some analysts caution that the benefits may already be priced in.
Stocks are getting pricey, trading at over 21 times forward earnings, much higher than the historical average. This high valuation could limit future gains, despite the attractive lower rates.
Meanwhile, commodities like gold and oil are on the rise as lower rates weaken the dollar. Investors are eyeing these assets to hedge against potential stock downturns.
Optimists believe that if the economy stays strong, stocks will continue to climb. đ