For all those who always reference …. “But in September 2007 there was a 50bps rate cut and a horrible recession after…”. Go back further.

    https://i.redd.it/nfgc4ilujrpd1.jpeg

    Posted by Sonic_the_hedgehog42

    29 Comments

    1. Thanks for showing a broader perspective rather than just cherry-picking the extreme bear or bull pov
      also this is actual DD, doesn’t belong in the casino. not one of us!

    2. The interesting one on here was the 100 bps cut in Jan 01 because the market didn’t bottom for like another year and a half after that

    3. Um the last 3 all had a pretty big reason….. I feel like yall miss out on a lot of context. Can anyone remember what happened soon after Jan 2001, September 2007, July 2019?

      Or is it just me?

    4. Real problem isn’t a recession. It’s if inflation will creep back up and get us stuck in a stagflation the moment the Fed tries to cut rates.

    5. Wow so it looks like, based on these historical comparisons that stocks can either go up or down. That’s fascinating and incredibly useful information to consider

    6. Sad-Technology9484 on

      The most recent three Ys weren’t normal. .com bubble, subprime scandal, and worldwide plague.

    7. You have to ask yourself whether these rate cuts were in reaction to a recession.

      2008 rate cuts was a result of a banking collapse.

      2020 was a result of covid.

    8. The key here is to look at what the inflation rate and fed funds rate were at when each of these cuts were made, as well as the couple of years prior. You will see that ’83 and ’89 are by far the most similar in terms of what sort of fed rate and inflation environments those cuts were a reaction to. As opposed to ’01, ’07, and ’19.

    9. 1995 is the one we are tracking with a similar timeline. What is interesting is that all of the recent cuts during the “easy money” low rate environment resulted in recession while the ones during the time of higher nominal rates did not.

    10. Finallytherenow on

      September 2007 50bp cut was a prelude to the Financial Meltdown, the Credit Crisis. Has much really changed for a repeat not to occur ?

      Stay Tuned ~@!@~

    11. Pitiful_Difficulty_3 on

      bears are trying so hard. Rate cuts generally good for market, unless there are some big black swan hit.

    12. We’re in a mass hysteria similar to covid, a month ago this sub would’ve told you there was no way a 50bps cut would happen because it would be a panic signal to the market, it happens and many major stocks are up over 5% in a day, this is absolutely insane. The rate cut being higher than expected is a sign of the economy being worse than people expected.

      If you’re looking at this market and thinking yep Carvana should be up 30% this week, have fun losing half your money.

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