Yes if the economy is weakening the market will fall after rates are cut. Why? Typically the FED is cutting rates because the economy is weakening or there was a financial crisis. The market goes up when rates are cut if the economy is doing ok. It is likely the FED is cutting rates so that the interest burden on the $35 trillion and growing debt doesn’t get out of control.
Did you not say in an earlier video that equities fall when rate cutting begins?
Yes if the economy is weakening the market will fall after rates are cut. Why? Typically the FED is cutting rates because the economy is weakening or there was a financial crisis. The market goes up when rates are cut if the economy is doing ok. It is likely the FED is cutting rates so that the interest burden on the $35 trillion and growing debt doesn’t get out of control.
So in the current context you are tending to believe the current cuts do not presage market weakening?
Very possible everything melts up.