The main issue is not about the 25 or 50 basis cuts that the Fed announces.
What can move the market even more is the outlook of the Fed coming to their interest rate cuts in the coming months.
It is tough to balance inflation and unemployment.
This can lead to a crash up when the demand surge (from rate cuts) lead to a higher price.
Let us always consider total costs of ownership over the product and service shelf life over than the initial cost of ownership. Having a view of total interest paid offers a better overview of any big ticketed items.
let us look into an example of buying a new car.
Let's add the other maintenance and servicing costs eg annual servicing, oil change, tire change, wiper change, brake pad, road tax, insurance, estimated petrol and electricity consumption, buffer for un-anticipated repairs as part of our cost so that we can better budget and assess affordability.
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