How Stocks React To Fed Rate Cuts...

Jerome Powell and The FED announced a 50 basis point rate cut yesterday and the biggest question we hear is - How do Fed interest rate cuts affect the stock market? Paul takes a deep dive into the answering how stocks react to fed rate cuts and what we might expect in the current stock market now that the FED pivot has happened!

👀 Watch our Stock Market for Beginners Series. This series is your complete guide to getting started investing in the stock market correctly so you can avoid 99% of investor mistakes. We will teach you the basics of investing, setting up your brokerage account, and buying your 1st stock.

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0:00 - Fed Just Cut Rates by 50 basis points
0:10 - Recession 1972 to 1980
2:02 - All-time low of evaluations
2:28 - 1990 Recession (Savings and Loan Crisis)
3:43 - 2000 to 2003 Recession (Dot Com Bubble)
4:43 - 50% Drop in S&P 500 + Parallels to today
5:43 - 2007 to 2009 Recession (Great Financial Crisis)
7:56 - Covid 19 Recession (2020)
9:35 - How you can profit from the stock market crash

[bennettross]

I Hit 110k today. Thank you for all the knowledge and nuggets you had thrown my way over the last months. Started last month 2024. Financial education is indeed required for more than 70% of the society in the country as very few are literate on the subject. thanks to Brooke Miller for helping me achieve this

[WSBro]

Remember that Paul that was bearish in 2020, remember that Paul with that valuation metric saying the market returns for the next 10yrs is minus, remember that Paul that was buying treasuries in 2022 instead of stocks in a bear market. Look at what they do not what they say.

[Fous]

Great video. I have locked my portfolio 25% Tesla (ca 175) 35%% NVIDIA (cost av 89) 25% Google (ca 135) and 15% SOFi (ca 6) with 2% Pepe meme coin (ca since 2022. I think I will ride the wave without touching anything till 2027. It is way harder to hold and do nothing!!

[dividendportfolio]

Paul. You can’t predict a market crash forever. You just need to buy stocks or you are never going to own anything. Waiting for everything to melt down, well the day just may never come.

[cardist]

Paul and Meet Kevin being on the same page is mot something I expected to happen

[RobbStonee]

So what's the most effective strategy during this period with the rate cut? Most of my portfolio is in (20% Index funds, 20% CD's 30% Bonds/T-bills and other assets) I want to explore different strategies to benefit from a potential bubble.

[Jayrd]

I definitely held on to META went from $88 to $561 in 2 years. New ath today. 💰 💰

[odoacredacalcutta]

yeah but I'm 40 and I'd like to get rich by the time I hit 50.. not when I'm 70 and I'm too old to enjoy life

[Geraldorodriguez]

Everything money, if were going to crash why are we gapping up 10$ and consistently pumping the last few days even week

[MusicLuv]

I was hoping stocks would go down but today it went up. Hope it goes down.

[stephenshanebeaty]

Do you have any videos talking about taking profits on stocks you own but have gotten way overvalued.

[robertwalla]

Hi.. whats your view if BOJ increase their rate this Friday....

[MafiosoARM]

I hate that the market is up today, like wtf? I want bargains to buy

[jazz]

One thing I have learned from watching this channel is Paul is a bad teacher and investor if he is investing in any stocks at all. I don't think he buys any of the stocks he recommends. Worse though he tells people not to buy stocks like the Magnificent 7 two years ago when they were really cheap. He has no idea what he is saying and is a hypocrite. The most bizarre thing is he has a tremendous amount of confidence but he is wrong most of the time.

[davidbest]

Best way forward individual stock picking.. For me Palantir next two decades….

[Roadie]

How do you feel about purchasing gold right now?

[davidbest]

Nasdaq three x in 5-6 years.. Going know where for next decade.. IMHO

[rubenschipper]

Something big happened since the past. More and more companies are now digital. However, accounting rules have not been updated. If you base your analyses on the past while the present economy looks totally different is not smart. First the accounting rules have to be updated to show a better picutre.

[-uz]

Code Red: I'd like to hear your views on KSPI, down big time.

[gmo]

Shld help with jobs. Rates were cut originally to save our asses durin the world pandemic and then jacked up later to stave inflation...caused by crazy demand coming off the pandemic and the supply chain issues reducing supply, and also that restriction on oil DT worked out w Saudis to help.oil companies out etc. restricting supply further and we the consumer picked up that bill as oil companies profited massively.. And also inflation exasperated by some price gouging at wholesale level and corp concentration as well. ..as they used inflation as a cover. Now we r seeing decent gdp and low inflation but unemp needs help. Powell got that unemp rpt late. He wouldv done this sooner. He def wont be lowering to zero levels in future. 50 more basis points cut to come for 2024. And 100 in 2025 supposedly.