Hey all, am I wrong in thinking the stock market is going to do extremely well if the fed starts lowering rates at the end of the year? Am I wrong- aka if fed starts lowering rates at end of 2024 and continues to a more manageable rate (say 2-3%), am I nuts if I think market would just crush and do very well due to fact businesses will have more access to cheaper money and investment will go up a lot?
I hope I’m wrong but I do think inflation isn’t going to be curbed and fed may have to pivot and raise rates from where they are now which could cause a recession which then would later allow them to lower rates. I think the fed is just pushing out false positive steam to not rattle market but yield curve shows an inversion. They have held off for a while but idk. Something is going to have to happen.
I don’t see inflation decreasing at rate they want and when the pivot happens where they keep rates high or even increase them- stock market is going to tank. I hope I’m wrong and I generally get it wrong (which I hope I am honestly). Thanks for any thoughts on topic- I hope I’m dead wrong, fed cuts rates starting end of 2025 and market just booms. I think it’s a pipe dream though sadly. Inflation seems out of control.
