The Compound and Friends cover image

Tom Lee Strikes Back

The Compound and Friends

NOTE

Cutting Rates Clears the Path for Equity Gains

When the Federal Reserve cuts interest rates in a no landing or soft landing scenario, it significantly benefits the equity markets. Historical data shows that three months after the rate-cutting cycle begins, stocks have consistently shown positive performance, never being lower during these periods. This trend highlights the strong correlation between rate cuts and market resilience, suggesting that a proactive monetary policy can lead to favorable outcomes for investors.

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