Are Rate Cuts Bullish? Not to Me...

[Jeff Clark's Market Minute]( Are Rate Cuts Bullish? Not to Me… By Jeff Clark, editor, Market Minute If the unemployment rate was a stock, I’d be buying it right now. The current unemployment rate is 4.3%. That’s low by historical standards. But, it’s much higher than the 3.2% level at which unemployment bottomed early last year. And, if history is any sort of a guide, the unemployment rate could be much higher in the months ahead. Take a look at this long-term, monthly chart of the unemployment rate… [chart] [(Click here to expand image)]( The red arrows on the chart point to the three times this century the unemployment rate shifted from a downtrend to an uptrend. We’re ignoring the COVID-inspired shift in 2020 since it was not caused solely by economic issues. It’s worth noting that the two prior trend shifts in 2000 and 2007 occurred just as the Fed started lowering interest rates. They also occurred just prior to massive declines in the broad stock market. Recommended Link [Forget AI THIS is Way Bigger]( [image]( While the world has been obsessed with AI and ChatGPT… Jeff Bezos has quietly gone all in on a technology that could prove to be FAR bigger. If you’ve never heard of “QaaS” technology you need to [click here now.]( [Learn more here.]( -- Of course, I’m not implying that the Fed’s decision to cut interest rates caused the unemployment rate to rise, and crashed the stock market. Rather, it’s more likely the Fed saw an economic shift coming in 2000 and 2007. So, it lowered interest rates in order to lessen the damage. Looking at this chart of the unemployment rate – which is clearly accelerating higher – it’s quite possible the Fed is seeing a similar economic shift developing right now. Free Trading Resources Have you checked out Jeff's free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. Keep in mind, the S&P 500 was trading near an all-time high in March 2000 when the Fed started cutting rates. The stock market lost 40% of its value over the next two years. The S&P 500 was at an all-time high in September 2007 when the Fed started cutting interest rates. The index lost more than 50% over the next 18 months. And now, with the Fed signaling it’s going to cut rates following its next meeting (September 18), the S&P 500 is trading near an all-time high. I don’t see this as a reason to be bullish. Best regards and good trading, [Signature] Jeff Clark Editor, Market Minute [Jeff Clark's Market Minute]( Jeff Clark Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.jeffclarktrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. Jeff Clark Trader welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-800-752-0820, Mon–Fri, 9am–7pm ET, or email us [here](mailto:contactus@jeffclarktrader.com). © 2024 Omnia Research, LLC. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Omnia Research, LLC. [Privacy Policy]( | [Terms of Use](