Fed pivot may not mean a stock market rally, says David Rosenberg

Stock-market investors may be hoping the Federal Reserve will soon pause its interest rate hikes, delivering rate cuts before year-end, but history shows that such a shift doesn’t guarantee a stock-market rally, according to Wall Street veteran David Rosenberg.

Based... Stock-market investors may be hoping the Federal Reserve will soon pause its interest rate hikes, delivering rate cuts before year-end, but history shows that such a shift doesn’t guarantee a stock-market rally, according to Wall Street veteran David Rosenberg. Based on historical data, the average time between the S&P 500 SPX peak and the onset of recession is about 6 1/2 months, according to a Wednesday report by Rosenberg. And it takes an average of 12 1/2 months for the S&P 500 to go from peak to trough, which usually happens before a recession ends.

Rosenberg said he expects the Fed to start cutting rates in the fourth quarter, which would mark the onset of an easing cycle.

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Fed 'accident' could slice 20% off the S&P 500, stock market strategist David Rosenberg warns. Here are 3 ways to protect your money now.Treasurys, cash and gold are your best bets when recession hits and squeezes credit, threatens jobs, and takes down bond yields and stocks.
Source: MarketWatch - 🏆 3. / 97 Read more »