Optimism in the wake of rate cuts

My team and I have our sights set on what happens next – in the aftermath of rate cuts. And we’ve been diving into the possibilities. I’m on the lookout for new stocks to add to my investment newsletters. I expect some great opportunities to arise in the next one to two weeks... [Header]( Optimism in the Wake of Rate Cuts Dear reader, It has been a few days since the Federal Reserve began its first rate cut cycle in more than four years – and stocks are trading near all-time highs. As you can see on the chart below, the market was wild following the rate cut news. The S&P 500 was up big at one point on Wednesday before closing the day lower. [mmi 9-21] After investors had some time to digest the news, stocks gapped higher on Thursday and put together one of the best days of the year so far. Unsurprisingly, stocks fell early on Friday as investors took some profits off the table and uncertainty was once again at the forefront of folks’ minds. As long-term investors, I’m not overly concerned about two days of trading. In fact, my team and I have our sights set on what happens next, and we’ve been diving into the possibilities… - Historically, stocks typically do well one year after a rate cut cycle begins. I believe there’s no reason to bet against history. I remain bullish looking out 12 months and beyond. - Lower rates will boost the economy. Everything from manufacturing to autos should perform well thanks to lower rates. - Small-cap stocks and sectors that rely on borrowing will outperform in the next 12 to 24 months. - The U.S. economy will experience a “soft landing” and a recession will be averted. As a result, I’m on the lookout for new stocks to add to my investment newsletters. I expect some great opportunities to arise in the next one to two weeks. Now, let’s recap everything we talked about in Market Insights this week… Monday: This will be a historical week for the market. The Federal Reserve is set to lower interest rates for the first time in more than four years. I expect we’ll see more volatility in the short term – to both the upside and downside. But the more important question is what the start of a rate cut cycle means for stocks in the long term. [Click here to read What Will Stocks Do After the Fed’s Rate Cut?]( Tuesday: We’re now just one day away from the start of the Federal Reserve’s interest rate cutting cycle. The odds that the central bank will be more aggressive have increased in the last few days. Now, it looks like it will start things off with a bang. [Click here to read What History Tells Us About Fed Day](. Wednesday: Believe it or not, one energy-drink maker was one of the best-performing stocks over the last 30 years. And it’s not the only consumer staple that has been flying under the radar recently. The sector has been leading the way this year, and we have all the details on the latest podcast. [Click here to read Finding Our Next Big Winners in This Under-the-Radar Sector](. [MMI Sept 18 Podcast]( Thursday: The Federal Reserve cut interest rates for the first time in four years on Wednesday. But what does it all mean? My colleague Imre Gams breaks down the impact these rate cuts could have on stocks, bonds, and the U.S. dollar... as well as your own portfolio. [Click here to read How the Fed's Rate Cut Could Impact Your Portfolio](. Friday: On Wednesday, the Federal Reserve slashed interest rates by 50 basis points (0.50%). It was a highly anticipated moment. And now that the speculation is over, it’s time to position our portfolios accordingly for the next year and beyond. [Click here to read Is This the Best-Performing Sector Following Rate Cuts?]( Here’s to the future, [Matt McCall signature] Matt McCall Editor, Market Insights © Centurion Publishing 13809 Research Blvd, Suite 500, Austin, TX 78750 [CenturionPub.com]( *Results are not typical. 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