What Interest Rate Cuts Could Mean For Markets

Summary

• The market performed better if there wasn’t a subsequent recession or if the economy was already in recession during easing.
• Value and small-cap stocks and energy and precious metal commodities performed after past rate cuts.
• Longer-term Treasuries, investment-grade corporate bonds, and municipals have had positive returns during easing cycles.

By Brian Levitt, Global Market Strategist

It's been in the news constantly for months. When is the Federal Reserve (Fed) going to start cutting interest rates? Markets, investment professionals, and investors want to know. Me too! So, what might a rate cut mean for markets and investments? A