Powell Says "We're Cutting Rates" - S&P Performance Mixed

8월 23일

A nice alignment comparing SPX, NDX, RUT with the Fed Funds Rate showing when the FED raises rates and cuts rates and how it impacts the indexes.

1995 Cut Cycle - S&P Higher
1998 Cut Cycle - S&P Higher
2001 Cut Cycle - S&P Lower
2007 Cut Cycle - S&P Lower
2019 Cut Cycle - S&P Higher (but after 30-40% COVID Crash)

Nobody knows how this cycle will impact current markets, but we're about to find out. September 18 = 1st cut since 2019 (pre-COVID) and we've seen some impressive booms and busts since 2018. It's pretty remarkable really. The bull markets seem unhealthy, and the bear markets seem more violent and aggressive, but end sooner.

How great or how nasty does it get? Let's figure it out and trade accordingly.