Rate Cut Meet Market Smash

Yesterday Fed Chairman Jerome Powell announced another one-quarter point rate cut.  And the markets were smashed as a result.

 

Meanwhile, the peanut gallery cries out with:  “But, But, aren’t rate cuts good for the markets?”

 

In a word…NO!

 

But many investors like to believe the Fed has control over the markets with their interest rate policies.

 

The indexes tell the real story…the DOW was down 1,123 points (-2.58%) S&P was down 178 points (-2.95%), NASDAQ was down 716 points (-3.56%) Russell 200 was down 102 (-4.39%).

 

Anyway you want to shake it, those were some serious percentage drops across the board.

 

Not Enough Rate Cut

 

And, of course, the pundits all want to blame the Fed.

Their reasoning?

The cut was not big enough and Powell hinted that there won’t be any more cuts in 2025?

 

Ironically (or NOT) we’ve been saying how the last two trading weeks of the year can be full of surprises.

 

And now, here we are, listening to Gomer Pyle in the background chanting, “Surprise, Surprise, Surprise.”

 

(Millennials, ask your parents about Gomer Pyle)

 

In Case You Missed it, last week we explained how the Inflation, CPI, and Jobs numbers were all bogus in a post titled “The Dirt is In the Details.”

 

Here’s an excerpt:

 

But the reactions from the mainstream media and Washington elites continue the propaganda and skewing of the CPI and Jobs data to serve their agenda that has been bought and paid for.

 

President-Elect Trump is sleep-walking into a recession that he will be blamed for.

But (in reality) he will inherit the recession from the O’Biden-Harris administration’s surrender to the NEOCONs.

 

Bottom line HERE? … Unemployment will rise during Trump’s administration.

 

So, add that to the increasing list of time bombs set to go off after Trump gets in office…courtesy of the bitter Democrats.

 

READ: The entire post (HERE).

 

We’re not saying “we told you so…”

 

Wait!

Check that…maybe we are…kinda sorta.

 

But if you think the markets are going to make a smooth transition from the O’Biden regime to Trump’s new administration then you need to study history.

 

Especially when you have an extremely vindictive outgoing administration that’s driving more nails in their coffin and they are too stupid to realize they are self-destructing.

 

And with increased volatility comes opportunities that most investors will overlook out of fear.

So, expect more blood in the streets as we wind down 2024 and check out our “Short and Sweet Tips” column in our December issue of “…In Plain English” (HERE).

 

Share this with a friend…especially if they think rate cuts help the markets.  They’ll thank YOU later.

 

And tell them:

 

 We’re Not Just About Finance

But we use finance to give you hope.

Support always welcome via the digital tip jar.

 

*****************************************