Why Everybody is WRONG about Stock Markets and the Fed Rate Cut

Why everybody is wrong about stock markets and the Fed rate cut. The Federal Reserve recently cut interest by 0.5 percentage points. But what does this actually mean for the stock markets? Some think it is an early sign of a potential crash in the stock market while others think it is a positive and bullish factor. But what do the charts and data say about the markets in the next several weeks and months? We explain. #stockmarket #sp500 #alessiorastani

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Trading has large potential rewards and also large potential risks. You must be aware of the risks and be willing to accept them. Don't trade with money you can't afford to lose. We are neither an investment advisory service nor an investment advisor. Data and information provided are solely for educational purposes. Nothing in this channel, videos and the information provided in it should be construed as a recommendation to buy or sell stocks, ETFs, futures, indices, forex, cryptocurrencies, commodities or any market. The past performance of any trading system or methodology is not necessarily indicative of future results. Current analysis can change due to future market events. Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated, therefore anyone considering it should be prepared to lose their entire investment.

[parker]

I completely love your analysis. Not seen TA guy like you, hats off to you.

Keep spreading good stuff

[tatianastarcic]

If I had $360k I would invest $100k in tech & $260k into dividend stock with a proven track record to grow with capital appreciation & dividend increase year over year

[Riggsnic_co]

I see the rising interest rate as a very big problem, as more investors will definitely pull out more money from the Stock market. This might have worked when I was still invest-ing with a couple thousand dollars, but it is more difficult now to decide whether to pull out more than $365k from my port-folio. I know some inves-tors still make that despite the strong bear market. In wish I could pull that feat

[NO-TIME]

Is the stock market getting better or is the rate cut some election time manipulation to entice new investors? My portfolio has done well all year, but now I’m feeling the pinch. My returns have dropped significantly by 6%, and the market’s all over the place. What do i do?

[DavidLucas-sorr]

At this moment, things appear to be odd. Inflation is reducing the value of the US dollar, but it is strengthening in comparison to other currencies and commodities like real estate and gold. People are switching to the dollar because they believe it is safer. I worry that the rising cost of living may cause the value of my retirement savings to decline.

[victoriaabott]

I dont even know where the stock market is headed to right now. my portfolio of around 200k is not increasing more than 5% and people are predicting a crash .

[AdamLevine]

Man, the Fed rate cuts are starting to mess with everything. I mean, they were supposed to help, but now I’m feeling the pinch. My savings of 600k is basically giving me nothing, and the stock market projection is all over the place.

[natetomholt]

Sounds like a skeptical outlook on things then. With the rate cuts do you think it's best for us who are not conservative investors to focus on bonds or dividend stocks? I want to reallocate my 7-figure portfolio and I preferably want the assets with the best ROI.

[LizaPhilips]

Personally, I think investors will start to seek more market diversification. Can I confidently invest about $40k into the markets this year? I'm still not sure how rates will effect the market just yet, which worries me a lot.

[arany]

In 2007, the market went up for 6 more weeks after the rate cut, then it plunged.

[JamesScott]

Some experts think the fed decision could boost certain industries, while others warn it might increase inflation concerns. I'm reviewing my $600K portfolio allocations and I'm curious about strategies to respond to these potential sector impacts.

[FireSideChitChat]

If you look at the unemployment rate next to the Fed funds rate, you will see that the rate cuts lead to bull markets when unemployment is moving down and a bear market when the unemployment is heading up. Clear as day, also compare it to the yield curve. If every recession started with bad news and clear weakness then they would be much more obvious. If someone says the labor market looks strong based off of one data release, they are assuming things will continue to be bright.

[sampearson]

Guys, just remember - when Powell wears a purple tie at FOMC it means up. If he wears blue GTFO

[BerryRyan-glsm]

It was stupid of me to sell $76, 000 worth of NVDA stocks without reinvesting. (Buying bonds or CDs is not for me). I’d rather stay 100% cash, or are there any other stocks that can 10x in 6 months? I have 180k ready to be reinvested.

[Tony-rzsm]

listen to the facts and please do your own research fact 1 The Sahm rule was triggered in 1970, 1974, 1980, 1982, 1990, 2001, 2008, 2020, and 2024. These years each coincided with a recession Not in 1995 fact 2 As the yield curve flattened, the Fed cut its policy rate 3 times 25bps over eight months beginning July 1995. The yield curve did NOT invert. A recession was averted until early-2001.fact 3 50bps cut has always lead to a recession.a fast cutting cycle

[sgc]

lol, so let me get this straight... if we go down that is bearish but if we go up that is bullish.. Well I can definitely take that to the bank. Thanks .

[CraigAdams-si]

Here’s what I say. When the Fed has cut rates at times the market was low, it’s gone up. When Fed has cut rates at times the market was high, it’s gone down.

[BrunsEver]

Look for what the market does over the next 2 weeks? you didn’t even look at 2001 where the rate cuts caused a bear market rally for a couple weeks and in 2007 sept to October when the market rallied for 3+weeks after the first rate cut. Was hoping to see you dive into this level of detail.

[geoms]

thank you for making this videos even if you have sold 90% of your Stock Positions

[AhViigoodorgreat]

Hi this is my first time watching your video - thanks for sharing
I clicked your video simply because your were saying "Everyone is Wrong" about the market
and I dont see any part of your video that explains this or did I missed ??
- where did everyone got it wrong ? why wrong ?
.
I hear you explained that there is No definitive way of predicting the Red or Green arrow
so you used 2 weeks to see which way the market goes by demand and supply -
isnt this usable for "ALL other events" including the Fed cut/raise?
ie any data-release or event you can use this "2-week waitout" thingy to decide - is this what you mean?
Thanks