After over a year of speculation and anticipation, the Federal Reserve has finally initiated its long-awaited easing cycle. In a decisive move, the Fed exceeded market expectations by slashing its benchmark interest rate by a substantial half a percentage point. This aggressive reduction signals a strong commitment to stimulating economic growth and mitigating potential risks in the economy.
What does history tell us after a rate cut
This table reflects the S&P 500's performance in the 12 months following Federal Reserve rate cuts.
Recession Years (1990, 2001, 2008, 2020): S&P 500 performance was mostly negative, reflecting the economic downturns and uncertainties post-rate cuts.
Non-Recession Years (1995, 1998, 2019): The S&P 500 saw strong gains after rate cuts, driven by economic growth and investor optimism
What does TA show now
As per my previous post, once the S&P 500 breakout of the previous high and stay there, high probability of it keeping the upward momentum.
What will I be doing
This is to remind...