CoinVoice has recently learned that the beginning of the Federal Reserve’s easing cycle should be seen as an important signal to increase stock exposure.
Chris Galipeau, senior market strategist at Franklin Templeton Institute, said history shows that when the Fed cuts rates during economic expansions, the S&P 500 rises an average of 16.66% in the 12 months after the first rate cut. When the Fed cuts rates during economic expansions, the S&P 500 has seen its largest average decline of 4.91%. He said that since the Fed cut rates in 1990, growth has been strongest for large-cap and small-cap stocks in the 12 months after the first rate cut. "So we think any pullback is a buying opportunity," Galipeau added. (Jinshi) [Original link]