In September 2019 the fed cut the rate by 25bp and the S&P 500 did show a positive return for the month.Right now futures markets are fully pricing in a 25bp cut and putting the odds of a 50bp cut at ~33%, so if anything I think there is probably more downside potential on stocks from the Fed meeting than upside (not that I would try to time the market around that nor suggest that the Fed rate decision will be the biggest driver of equity prices in September).The fact that the Fed has already clearly signaled the coming rate cut in September means that's already priced in. Stock markets move in reaction to changes to what's already expected.Has the Fed cut interest rates in September of any of those years?Just looking at past history of September for the last 4 years
If I were a betting man, I'd bet that in September 2024 equities will have a positive return due to the fact that the Fed has already signaled that there will be a rate cut in September.
Since I'm not a betting man, I'll just stay the course.
Just Sayin
.Statistics: Posted by retireIn2020 — Sun Aug 25, 2024 2:43 pm — Replies 74 — Views 6624