They’re LYING to you, rate cuts are actually BAD…
Well, in the short term they are. The biggest crashes in history didn’t happen before the Fed pivot. They happened after it.
1970s?
Fed cuts → stocks nuked.
2000 dot-com?
Fed cuts → -51%.
2008?
Fed cuts → -58%.
Even the early 2020s saw the same pattern.Every major decline came after the Fed switched from hiking to cutting.
Why?
Because the Fed doesn’t cut rates when “everything is great.” They cut when something is breaking. Liquidity, credit markets, the economy… and eventually equities. Don’t be surprised if the market does the exact opposite of what everyone on your feed expects.
But here’s the thing, after those drops, markets always recover and eventually push to new all time highs. So don’t panic. If you’re a long-term investor, you’re gonna be fine. Just make sure you have a solid safety net in place.
Many people are going to wish they followed me sooner or later.
Opinion and Observation. Let's see what will happen in near future.
