Getting The Equity Data Together
World Events, The Fed Rate Change, and Market Performance
1. It highlights the Fed’s recent strategy of cutting rates in the presence of a negative economic shock (Vietnam War & Oil Crisis, Dotcom Bust, Great Recession). And each time the Fed has cut its rates, the value of the S&P has climbed again. Though it is important to note that correlation does not mean causation. I am not suggesting that the rate cuts were solely responsible for the economic rebound. There are many other factors to consider as well.
2. Over time, the value of the market shows accelerating growth. So take a deep breath, grab a coffee and remember that your retirement is years away, and unless the US implodes, you’re probably going to see more growth in the long term.