Stocks Rise Despite Rate Cut Hopes Cooling

Matthew Allgood |

 

 

 

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Stock prices and Federal Reserve interest rate cut expectations were moving together until recently. Now there is a divergence due to a change, in that market participants believe the Federal Reserve might postpone or slow the pace of interest rate reductions, but the stock market has continued up. The question for many is whether the stock market will maintain its upward climb or adjust downwards with the change in rate cut expectations.

 

Since the future market direction is unpredictable, we are prepared for any scenario. Our RiskFirst® approach is designed to participate in market growth phases while navigating through the potential market dips that inevitably come.

 

 

Stocks Rise Despite Rate Cut Hopes Cooling

 

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Source: Bloomberg, Redwood. Data as of 4/5/2024. Date Range from 6/21/2023 – 4/5/2024.

 

Regards,

Allgood Financial

Disclosure: This piece is for informational purposes only and contains opinions that should not be construed as facts. Information provided herein from third parties is obtained from sources believed to be reliable, but no reservation or warranty is made as to its accuracy or completeness. Charts and graphs are for illustrative purposes only. Discussion of any specific strategy is not intended as a guarantee of profit or loss.  Past performance is not a guarantee of future results. The objectives mentioned are not guaranteed to be achieved. Investors cannot invest directly in any of the indices mentioned above. RiskFirst® is a registered trademark of Redwood Investment Management, LLC.

 

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