SmartReversals’ Trading Compass

SmartReversals’ Trading Compass

Fundamental and Macro

Rate Cuts - How to Anticipate the Direction for the Stock Market and Bonds?

A visual guide of indicators that must be considered before being too optimistic about rate cuts

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SmartReversals
Sep 04, 2024
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Rate cuts seem imminent, which direction can the stock market take?

This third installment of the historical rate cuts analysis focuses on the effects on bonds and the key indicators that can help assess the direction of the stock market.

While the previous two editions centered on the moves in the S&P 500, we've observed immediate volatility whenever such moves are confirmed by the Fed.

After examining the implications for the bond market, this edition includes the key macroeconomic indicators to study with their historical performance and their current status for considering the potential direction of the S&P 500 following rate cuts.

Rate Cuts: Are Bonds a Buying Opportunity?

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