Expect fireworks after September 2024 rate cut. (recession odds spiking)

The Fed just signaled that they are going to cut interest rates in September 2024 due to a slowing economy and labor market. Historically - Fed rate cuts mean the economy is about to tip into recession.

With 11 of the last 15 fed rate cut cycles ending in a recession. Signaling that homebuyers, investors, and economy watchers should tread carefully over the next several months. If history repeats itself, there could be fireworks in financial markets.

Jerome Powell and the Federal Reserve indicated that they are set to ease monetary policy due to a slowing in labor market conditions. The unemployment rate has spiked up to 4.3%, while the number of unemployed has also skyrocketed.
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[ReventureConsulting]

Rate cuts are the ultimate recession signal. 11 of the 15 rate cut cycles have led to recession in six months.

Only times it didn’t the economy was noticeably strong.

Something to think about before buying the realtor hype of “buy now before the Fed cuts”.

[tatianastarcic]

Stability is a result of our economy's struggles with uncertainty, housing issues, foreclosures, global volatility, and the pandemic's consequences. To restore stability and promote growth, all sectors must respond quickly to concerns about growing inflation, slow growth, and trade disruptions.

[rachelonigirl]

The belief that the Federal Reserve would stop raising interest rates was the driving force behind the entire economic chaos. What should we do now that we have a situation where interest rates are crashing? At this point, how would you suggest that I safely allocate $300k?

[JacobPaula]

Used to think investors lose out amid crash, meanwhile some make profits. I also thought folks went out of business during the great depression, but some went into business. Bottom line, there's always depression for some while others amass wealth gains.

[AndrewHenry]

Its worse here, our economy is like a flailing fish, fighting for its life. The normal state of the U.S. economy is actually very bad. Because of this it goes into convulsive spasms fighting to grow any way it can out of desperation. Tricks, gimmicks, rule changes try to stimulate the economy and prevent it from falling but they only bring temporary relief to people since, when you factor in inflation we are declining.

[ClaudiaSchreiber-bp]

This global recession/collapse might end up being a part of us for a very long time. With inflation currently at about 3%, my primary concern is how to maximize my savings/retirement fund of about $680k which has been sitting duck since forever with zero to no gains.

[alexsteven.m]

I used to think everybody went broke during the Great Depression and other major crashes but they didn’t… Some made millions, I also thought everybody went out of business during these times but they didn’t, some went into business, there's always depression/recession for some people and there's always a good time for others, it's all about perspective.

[TruckerJoe]

As truckers of 23 years, this should be the busy time. It is not! The last time this started happening was back in 2007 2008.

[brianwhitehawker]

Markets look like 2015-16. Probably going back to all time highs, but will probably go sideways until fed signals rate cut, Recently sold 25% of my $285k portfolio comprising of plummeting stocks that were recommended by certain financial YouTubers, quite devastating!

[FaithAndrada-xoou]

Transfer of wealth usually occur during market crash, so the more stocks drop, the more I buy, in the meanwhile I'm just focused on making better investments and earning more as recession fear increases, apparently there are strategies to 3x gains in this present market cos I read of someone that pulled a profit of $350k within 6months, and it would really help if you could make a video covering these strategies.

[AndersonNoah-ol]

A number of the most eminent market experts have been expressing their views on the severity of the impending economic downturn and the extent to which equities might plummet. This is because the economy is heading towards a recession and inflation is persistently above the Federal Reserve's 2% target. As I'm aiming to create a portfolio worth no less than $850, 000 before I turn 65, I would appreciate any advice on potential investments.

[oneillbilder]

So how exactly can we guard against the coming financial reset for 2024? Like what are really the best strategies to make our portfolio recession proof against the incoming financial reset? I'm very worried about my $110k stock portfolio.

[jorgegonzalez]

Another significant reason why a recession did not occur during the rate cuts of 1966, 1984, 1995, and 1998 is that the yield curve between the 10-year and 2-year Treasury bonds was not inverted during those periods. Historically, each instance where the Federal Reserve has cut rates while the yield curve was inverted has been followed by a recession. Currently, the yield curve has remained inverted for two years, marking the longest inversion in history. This persistent inversion may signal heightened recessionary risks.

[rickmcdonaldj]

I've been reconsidering my retirement strategy, questioning if my 401(k) and IRA are enough for a secure future. I’ve also invested $300K in the stock market, but the returns have been inconsistent and modest. I'm looking for an investment approach that better aligns with my risk tolerance and financial objectives.

[albacusBC]

Hi! I live in New York. I'm looking to start investing in the stock market with $80k. How would the fed decision affect the market? And should I focus on index funds or individual stocks? Thanks!

[not_nostradamus]

I live in a solidly middle class suburb of Los Angeles. In the year 2018, there were no vacant rentals and no empty office spaces and no homeless people in my city. Today, there are homeless people on every other commercial block. There is a "For Rent" sign on almost every block in the residential areas. There is typically one or more empty or significantly empty office buildings on almost every commercial block. There is a U-Haul, PODS or U-Pack self move cubes on almost every residential block. There are "For Sale" signs on at least one house on every block. My eyes and chats with my neighbors say this area is in a recession. Yet, according to the government and Zillow statistics, things are going great in my city suburb of Los Angeles.

[ElizabethDaniel-]

Stop waiting for the government to give job opportunities which are wasting much of your time when you can invest in digital marketing and live your dream life.

[IsabelConchita]

Amazing content! I have been following your videos for sometime now, consistently kicking down Wall Street doors for two years now, I have over $320k in stocks. Currently, my portfolio is down by 15%. Wondering if they're any short term opportunities I can invest in.

[increaseyourvibes]

I don't care what they do with interest rates. Prices are still too ridiculously high !!!

[OscarGarcia-skpx]

The demand for homes will not increase because of lower interest rates. Affordability is the key. High prices, high unemployment, high levels of debt. Not a good mix for a healthy real estate market.