Many people expect the upcoming interest rate cut to be either 25 or 50 basis points. In my view, both scenarios come with pros and cons. On one hand, I would welcome a larger 50bps cut since I hold stocks and treasury bond ETFs, which would likely benefit from such as move. On the other hand, a smaller 25bps cut appeals to me as well as I prefer the high interest rate environment to persist a bit longer, allowing me to earn more interest on my savings.
That said, does the rate cut have to be 25 or 50 bps? While these are the most discussed possibilities, other outcomes aren't impossible, though less likely. The impact of the rate cut on the stock market will vary across sectors, with some benefitting more than others. I do have certain stocks I am looking to sell so I am hoping for a bullish market in response.
Modify on 2024-09-18 19:08
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.
