History says Fed interest-rate cut sets up ‘crapshoot’ for stocks
William Watts
~1 minute
The Tell
History says Fed interest-rate cut sets up ‘crapshoot’ for stock-market investors
The 2-week period after a cut has been a binary guide to ‘decent gains with low risk or limited gains with high risk’: SentimenTrader
Published:
What happens to the stock market after the Federal Reserve begins cutting interest rates? The unhelpful answer is that it depends.
“Opinions aside, the imminent cut in the fed-funds rate has been a crapshoot for investors. There was no consistent pattern in forward returns after significant hiking cycles,” said Jason Goepfert, senior research analyst at SentimenTrader, in a Tuesday note.