Saturday, September 21, 2024

📌 Your End-of-Week Bulletin - September 21, 2024

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Manward Digest
 

Reflecting on That "Unfortunate" Rate Cut

Alex Moschina

Alex Moschina
Publisher

"If we don't get a 50-basis point cut, will there be a sell-off?"

Stuart Varney put this question to Shah on Wednesday's edition of Varney & Co on Fox Business.

And, in typical Shah fashion, our intrepid Chief Investment Strategist said - through a laugh - that he was hoping for a sell-off... because it would create a "buy the dip" opportunity.

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"Unfortunately" for Shah, we now know that the Fed did indeed cut rates by 50 basis points.

The markets roared to new highs in response to the Fed's long-awaited announcement.

It's a big deal for savers and credit card holders, too. Rates have now dipped below 5% - on average - for the first time in more than a year.

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The cost to borrow money is getting cheaper... and may get cheaper still before year's end.

That should be great news for stocks across the board. (Not to mention crypto, which is nearing heights not seen since August.)

And it should be especially great news for small caps and tech innovators who depend on debt to finance research and - ultimately - growth for shareholders.

We've written plenty about why AI stands to benefit from the lowering of rates.

This could very well spur a new AI stock supercycle.

As for what this all means for the actual economy... well...

Shah also devoted this week's episode of Buy This, Not That to companies that stand to do well if this week's rate cut turns out to be "too little, too late" from the Fed.

We'll just have to wait and see there.

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Regardless, it was a momentous week. And it's sure to be followed by even more big events over the months ahead.

As we said on Wednesday... this is an election year, after all.

Stay tuned for more on Monday. And in the meantime, feel free to peruse our latest commentary. It's all linked below.

Have a great weekend,

Alex

Week in Review

 

Monday Takeaways: The Fed's Rate Cut Could Make or Break the Market

Dollar Bill - Fed Building

All eyes are on the Fed this week... and its long-anticipated rate cut. The Fed's big announcement has the potential to make or break the market... Click here to get Shah's full comments from Monday.

Unlock Your Election Investing Edge

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There are times when politics and markets intersect. One of those times is during presidential election cycles, where the influence on the stock market is more pronounced... Here's why...

Buy This, Not That: What to Buy in Case of a "Hard Landing"

Drive-Thru

Fast food stocks tend to do well when the economy gets rough for consumers. But which fast food stock is best to buy right now? Get Shah's take here.

Dealmaker's Diary: A "Value Add" Play on Our Digital Transformation

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This $7B IT firm is on the move... is cheap... and is helping make our digital transformation possible. See it here.

This Number Is Trouble

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U.S. credit card debt stands at $1.142 trillion. That's the highest balance since tracking began in 1999... And it's trouble. Keep reading...


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Alex Moschina

Alex Moschina is the Publisher of Manward Press. A gifted writer, editor and financial researcher, Alex's career in publishing began more than a decade ago when he worked at one of the world's leading providers of academic research and reference materials. Alex first cut his teeth in the realm of investing when he joined the team at White Cap Research in 2010. There he was charged with covering emerging market trends and investment opportunities. A stint as senior managing editor and editorial director at the prestigious Oxford Club followed. A frequent speaker at conferences and events, Alex has led educational workshops across the U.S. and Canada.

 

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