The Fed Caves and The Market Tanks
In this video I cover today's market action in response to the Fed announcement to cut the federal funds rate by 25 basis points.
We look at the historical funds rate, the larger trends in the stock market, and how it all relates it to the chances of recession.
Will this be the catalyst for the next downturn? It could be!
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With the Fed cutting rates within 2% of the all time highs, 1 year later resulted in a positive return 17/17 times...it could be different this time for sure but for now....boolish!!
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Could be! I'm looking at the larger macro trend here for the economy, not 1-year market returns.
Yea man you have to look at things this impactful from a historical context or you'll be shooting in the dark. Thanks for the breakdown...i was definitely curious to see how the market would react today.
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Glad you found it interesting!