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Tech outperforms after jumbo Fed rate cut: Are bullish signals coming?
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The Fed just opened a door to stunning stock gains

The Fed just opened a door to stunning stock gains
The Fed just opened a door to stunning stock gains
in its updated Summary of Economic Projections, the Fed pointed to more rate cuts this year… more rate cuts next year… and more cuts the year after that. In total, the Federal Reserve is projecting another seven to eight rate cuts over the next two years.
Mortgage rates will crash, reenergizing sidelined homebuying demand and unfreezing the housing market. Auto financing rates will plummet, too, reheating the stalled-out auto market. And debt costs will fall, prompting both individuals and institutions to borrow and spend more money.
In other words, it seems the economy is about to bounce back in a big way. As it does, the markets should, too.
The next 12 to 24 months could prove to be fantastic for the markets… especially so for tech and AI stocks.
The bulk of evidence suggests that we will get the ultra-powerful, ultra-rare combination of falling interest rates and rising earnings over the next few years.
So long as that dynamic persists, stocks should keep pushing higher, led by those with the biggest earnings growth – which, as of now and likely for the foreseeable future, are technology stocks.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only. Read more
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