Market Moment - September 2024
In this Market Moment video update, our Director of Investment Management for Wealth and Fiduciary Services Anthony Valeri offers insights on how a Fed decision to cut interest rates could impact the trajectory of stocks and bonds.
Key takeaways:
- Stocks historically finish higher in the year following rate cuts, but the
return is below average - Large cap stocks typically outperform small cap stocks during Fed rate cut campaigns
- Whether stocks decline or move higher depends a lot on whether a recession ensues
- Bonds tend to benefit ahead of and during Fed rate cut campaigns. But with 2% worth of rate cuts priced into the futures market through end of 2025, the bond market may have already accounted for the good news about rate cuts