WJ77
09-22

The latest Fed rate cuts have been making headlines, and opinions are divided on what this means for the economy. Essentially, the Federal Reserve lowered its benchmark interest rate to a target range between 4.75% and 5.00% with an aggressive half-point cut. This move is expected to benefit consumers with credit card debt, car loans, and home buyers, as well as stock market investors.

However, the question on everyone's mind is: will this prevent a recession? Historically, rate cuts have rarely been bullish for equities if they came after yield curve inversions, which reliably forecast recessions. The yield curve has been inverted since late 2022, suggesting that a recession might already be underway or will begin soon. Bottomline, be cautiously optimistic as you invest and be ready to eject.


Investing vs. Speculating—How Do You Balance the Two?
Take a look at your own portfolio—are your top performers driven by long-term investments, or were they more speculative plays? So, how do you divide your portfolio between these two approaches? What’s your balance?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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