Why a Fed rate cut generally signifies a bull run
Why does everyone shout that a bull run is coming when the Fed cuts interest rates?
In fact, this logic is not complicated; to put it simply, it can be summarized in one sentence: if money is too cheap, it won't just lie quietly in the bank.
Think about it, what does the Fed lowering interest rates mean? It means that if you keep your money in the bank, the interest you receive will be lower, and you may not even keep up with inflation. Large amounts of capital will be reluctant to stay in the bank and must seek out places with higher retur
View OriginalWhy does everyone shout that a bull run is coming when the Fed cuts interest rates?
In fact, this logic is not complicated; to put it simply, it can be summarized in one sentence: if money is too cheap, it won't just lie quietly in the bank.
Think about it, what does the Fed lowering interest rates mean? It means that if you keep your money in the bank, the interest you receive will be lower, and you may not even keep up with inflation. Large amounts of capital will be reluctant to stay in the bank and must seek out places with higher retur