The Dark Side to This Week's Fed Meeting
Another grim jobs report may have rattled the markets last week. But today, many investors are looking ahead for a hopeful silver lining. All eyes are on the Federal Reserve as they are likely to announce the first rate cut in over two years. This is widely believed to be a good thing for the U.S. stock market and the American public alike... Or, at the very least, a step towards the "normalcy" we've been craving since the 2022 bear market. But friends, I urge you not to forget that there is a dark side to this story. Traders are placing steep bets on big rate cuts – not just next week but over the next 18 months. More specifically, they're pricing in a whopping 175 basis points of cuts over the next year and a half. With only one exception, this level of radical slashing has only happened twice in stock market history – during two of the biggest market crashes of all time: - The dot-com bubble in 2001...
- And in September 2007 – just ahead of the Great Recession.
Now, am I calling for a 2007-level economic meltdown? Absolutely not... But for my full analysis of the Fed's decision and what it specifically means for stocks over the next 90 days, you'll need to tune in this Thursday. My point is that you cannot afford to ignore the extreme, immediate consequences this week's meeting could have on U.S. stocks... Both good and bad. Because – make no mistake – the Fed holds the future of the U.S. stock market in its hands. And as I explain here, their next move this week could change everything. Regards, Marc Chaikin
Founder, Chaikin Analytics | 
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