How Fast Does the Fed Cut and 5 Stocks to Buy Now

If you liked this video, these are perfect for you!

We know Fed cuts are coming in September, now just three weeks away, but how much does the Fed usually cut interest rates? How will it affect your money and what are the #stockstowatch that could win? After the fastest hike of interest rates in 40 years, the Fed is now ready to start cutting rates and it’s all the market can talk about. The CME Fedwatch Tool, a market expectation of the Fed’s likely path based on futures pricing shows a 100% certainty of the Fed lowering interest rates starting September 2024.

Looking at Fed rate cut cycles back to 1965 and #stockmarket returns, we see two very different scenarios. When the Fed was able to jumpstart the economy quickly, avoiding a recession, stocks jumped an average 16% over the year from the first cut. When the central bankers are too late though and the US falls into a recession, stocks fall by just over 2% on average.

I’ll get to the #stockstobuynow but Fed cuts will affect your money by lowering interest rates on everything from mortgages to credit cards and car loans. The ultimate number of rate cuts and speed is uncertain but we do know that rates will be significantly lower within a year. That means, unless you just have to buy that new Lambo now…waiting six months to a year could save you a lot of money on your loan.

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Joseph Hogue, CFA spent nearly a decade as an investment analyst for institutional firms and banks. He now helps people understand their financial lives through dividend stocks, investing and ways to make more money. He has appeared on Bloomberg and on sites like CNBC and Morningstar. He holds the Chartered Financial Analyst (CFA) designation and is a veteran of the Marine Corps.

0:00 Fed Rate Cuts and Stocks to Buy Now
0:49 How Many Rate Cuts Does the Stock Market Expect?
1:53 Why Does the Fed Increase and Decrease Interest Rates?
2:26 Federal Reserve Interest Rates and the Economy
3:13 What Happens to Stocks when the Fed Cuts Rates?
3:35 Fed Rate Cut History 2000 - 2024
6:07 Fed Rate Cuts and Your Money
6:30 Best Stock Sectors when the Fed Cuts Rates
7:21 Stocks to Buy Now Before the Fed Cuts Rates
9:37 Stocks to Watch this Week
11:40 Stock Market News this Week

Disclosures:
All content on this channel is for informational purposes only and should not be construed as professional financial advice or recommendation to buy or sell any securities. Trading stocks, ETFs, other securities, and/or cryptocurrencies poses a considerable risk of loss. Neither host or guests can be held responsible for any direct or incidental loss incurred by applying any of the information offered. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Should you need such advice, consult a licensed financial or tax advisor. When you make purchases through links in this video description, the author may earn a commission.

[SeanTalkoff]

BUY with confidence. It's still early in the game. Globally, NVIDIA is the favored technology partner and the clear leader in AI. NVIDIA is far ahead of the competition even with new competitors on the horizon. 85% of the market. 76% to the margin. Unmatched interest in the latest Blackwell chip. For Blackwell, demand is significantly higher than supply until 2025 and beyond. There is nothing comparable to Blackwell among rivals. Additionally, the forward P/E is at 33, which is inexpensive for a business with strong growth. Purchase this stock, then bide your time. You'll receive compensation.

[oneillbilder]

The rising interest rate can surely control inflation, but won't prevent erosion of the eroding purchasing power of the US dollar. I have learnt my lesson this time. The banks can't be making money off my money, while inflation eats into it. I have set aside 650k to invest in the stock market now, since that keeps up with inflation, but I don't know how to get started.

[PaytonBilliAndria]

I agree that many people are considering NVDA as the "Stock of the year." However, I'm curious about which stocks could potentially become the next META in terms of growth over the next decade. I've allocated $200k for investment, looking for companies to make additions to boost performance

[AmithKaury]

Purchasing a stock may seem straightforward, but selecting the correct stock without a proven strategy can be exceedingly challenging. I've been working on expanding my $210K portfolio for a while, and my primary obstacle is the lack of clear entry and exit strategies. Any advice on this matter would be greatly appreciated.

[Muller_Andr]

The stock market is more volatile than ever. recently went "all in" and bought up $80k worth of ETF's & individual stocks, my aim is to take advantage of this S&P 500 downtrend, what could be accurate predictions moving forward? Open to chat.

[ranep]

Strong BUY. Still early innings. NVIDIA is the dominant leader in AI and the preferred technology partner globally. Even w new competition on the horizon, NVIDIA is far ahead of the competition. 85% market share. 76% margin. Unrivaled demand for new Blackwell chip. Demand far exceeds production for Blackwell through to 2025 and beyond. No competitor has anything close to Blackwell. And forward P/E is about 33 (cheap for a high growth stock). Buy this stock and wait. You will be rewarded.

[Foster_a]

Stocks in the short term look more likely to move downward. I Just inherited $500k which I Look forward to invest. what stocks should I look into as a newbie to safely grow my money?

[BobDeshaun]

Hit 100k today. Thank you for all the knowledge and nuggets you had thrown my way over the last months. Started last month this 2024 investing with Katherine Stewart.

[RashikNimjbhai]

Let's get more information on the Cryptonica Liquidity Pool.

[ArleneMaxwell-lp]

I came across your channel through this video—case studies are incredibly valuable, and I'm eager to see more in the future! Building wealth involves establishing routines, like consistently setting aside funds at regular intervals for smart investments.

[yeejohtay]

Thank you for your videos! Can you talk about TMF?

[mdhruv]

Can you also let us know your views on Agnc Bito and pdi

[ahmdalaaedin]

Clean explanation and clean look and style. I like your informative materials and the consistency.

[carlcooper]

Please do a video on GOOG, ET, ULTA, and AMZ

[michaelbreeland]

The funny thing is that the current interest rates are not historically high.

[JimCollins-hu]

Let's be very clear about one thing. The "market" has been massively wrong on what the Fed should do with the funds rate for at least 2.5 years now. In early 2022 before the Fed even started hiking, the market was already forecasting rate cuts to happen by end of 2022. The market at the start of 2024 had 7 rate cuts for 2024. Laughable to suggest the Fed is the one that has been getting this wrong. It has proven out that they were right to start hiking in early 2022, aggressively ramp up that funds rate, and then keep it at the terminal rate until now. Also, the Fed on numerous occasions has stated that a recession will likely occur as a result of this hiking cycle. The market consensus has been no or soft landing, which is another thing they will be massively wrong been engaged in active trading and managed to grow a nest egg of around 140k to a decent 539k....I'm especially grateful to Adriana Jensen whose deep expertise and traditional trading acumen have been invaluable in this challenging, ever-evolving financial landscape.

[LaverneWhitman]

I previously believed that all investors experienced financial ruin during economic downturns, but i now realize that some of them actually make a fortune. In summary, while some people face recessions, others seize profitable opportunities, and it all begins with having the correct mindset. As a result, I have allocated some of my savings for future investments. Regrettably, I lack experience in this area.

[tklestnoas]

iam also buying stock with monthly divident, it is a good chance if the market also down, iam getting some dividents every day i like that recently one stock have big jump cava i buy some cava when 30 dollars now 128 good chance. cava is good business, another one is uber and pltr thnaks jvc

[ThePhilman]

Such a pity that there are so many scammers in the comments.
It ruins what is possibly a good channel.

[toniolani]

Bought AWS75X after watching your video, super excited! 💰