It’s another information-packed episode with the Money Wise guys and they begin with a rapid-fire market recap for last week. The Dow was down 365 points, the S&P 500 was down 13.5 points, and the NASDAQ was down 1.2%. YTD the Dow is up 2.7%, the S&P 500 is up 7.4%, and the NASDAQ is up 7.2%. Although we’re seeing drops across the board, each market reached an all-time high throughout the week but Fridays seem to be hitting us especially hard this month. The Money Wise guys discuss their thoughts on why we’re seeing so much fluctuation in the markets as well as other headlines. They also discuss the interest rate cuts we’re expecting to see this summer and how they think those cuts will be rolled out. The Money Wise guys seem to caution listeners on believing the rumors, doubting that they’ll give cuts too early before the presidential election. The guys also discuss the latest employment report and how they think those results may play into the Fed’s decision.
Will the Federal Reserve Announce Interest Rate Cuts This Year?
If the Federal Reserve were to announce interest rate cuts this year, it would likely be in response to signs of economic slowing, to stimulate economic growth. By lowering interest rates, borrowing costs decrease, encouraging both consumers and businesses to spend and invest more. The goal is that this will lead to increased economic activity, potentially boosting job creation and consumer spending. For the investment landscape, interest rate cuts can have mixed effects. On one hand, lower rates tend to make bonds less attractive relative to stocks, potentially driving up stock prices as investors search for higher returns. On the other hand, if the rate cuts are seen as a response to significant economic downturn risks, it could lead to increased market volatility. Overall, while interest rate cuts can provide short-term economic stimulation and potentially buoy the stock market, they also reflect concerns about underlying economic health and can lead to increased inflationary pressures over the longer term.
In the second hour today, the Money Wise guys share the 10 Myths of Retirement Planning. You don’t want to miss the details! Tune in for the full discussion on your favorite podcast provider or at davidsoncap.com, where you can also learn more about the Money Wise guys or take advantage of a portfolio review and analysis with Davidson Capital Management.
