Think rate cuts will save the bull market? Think again, according to Stifel. "Fed cuts are a red herring," Stifel strategists said in a note to clients. "We have our doubts about the currently widespread belief that 'Fed Cuts=Buy Stocks.'" Markets are expecting the central bank to lower benchmark rates by at least a quarter percentage point in a few weeks, which could give the stock market a much needed boost after a volatile period.
An inverted yield curve has signaled most recessions since World War II. A normalization of the curve usually takes place before a recession hits, meaning the U.S. could still be in for some rough economic waters ahead. "Economic slowdowns have always been preceded by bottoming 10Y-2Y 'bull steepening' yield curves," Stifel said. "Bull steepening yield curves have historically led to the weakest stock markets.
South Africa South Africa Latest News, South Africa South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: Investingcom - 🏆 450. / 53 Read more »