As the final trading day for 2023 commences, Wall Street is looking forward to 2024 when many believe the Federal Reserve will begin to cut interest rates. What could the fallout look like if the Fed begins to cut too early or too many times in this economic environment?
Unlimited Co-Founder, CEO, and CIO Bob Elliott joins Yahoo Finance to give insight into the Fed’s looming rate decisions and the impacts they could have on the overall stock market.
“Any time the Fed quickly cuts interest rates is a time you don’t want to be holding stocks, and so I think there’s a real disconnect between what we see priced in the stock market and what we see priced into the bond market right now,” Elliott says on equities. “Stocks are pushing new highs, reflecting the fact there’s a strong set of liquidity conditions and the fall in long-end rates is actually on the margin stimulative to the US economy.”
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
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Rate cuts ease burdens on borrowers from home mortgages credit cards refinance and loans. Cuts boosting companies valuation potentially fuel for stockholders. This guy needs to go. Humanity population bigger than stock markets.
he said “quickly,” because (typically) when the Fed responds aggressively it is because something is very wrong with the Economy.
I wouldn’t say what they are forecasting is “quick,” so I would use the current forecast as a gauge:
faster than predicted – maybe shave equity positions
slower or as predicted – more likely a good year for equities
markets pricing cuts between march to august. when stocks crash they crash hard and 2023 was an absurd difference between stock valuations and real economics. the fuel is running out for stocks, look at the price of everything else. average joe needs to sell his 401k just to keep up and he can forget about leveraging it to buy a house
@@thebigballer2434 men in suites think only their wallets clueless on relationships. Man will destroy!
It’s still way to early, please don’t raise them fed.
Did he just say don’t hold stocks when they lower rates???
I don’t see real inflation down yet except made up CPI numbers I lost my business not due to deflation rather due to inflation
No crash coming all bs