Interest Rate Cuts, The Magnificent Six & Equity Index Annuities
The Money Wise guys are back in the studio to discuss interest rate cuts, the new “Magnificent Six,” and s much more. They kick off the show with last week’s market recap. The Dow was up 0.6%, the S&P 500 was up 1.1%, and the NASDAQ was up 0.9%. YTD the Dow is up 1.1%, the S&P 500 is up 2.5%, and the NASDAQ is up 3.0%. January has us off to a really good start for 2024, and many analysts say, “As goes January, so goes the year.” It’s a bit of a surprise considering we had such a run in Q4 of 2023, mostly in anticipation of Fed interest rate cuts. Also surprising is that we’ve seen some fairly strong economic numbers of late and the markets have not reacted negatively. The Money Wise guys discuss whether this is because the inflation news shows continued progress in getting to the magical 2% year-over-year inflation number. The guys also discuss mixed earnings and why Tesla might be out of the Magnificent 7.
Let’s Talk About Interest Rate Cuts
The Fed increased interest rates 11 times over the past few years, and we’re expecting some interest rate cuts in 2024. However, the Money Wise guys feel the pundits saying we’ll see six cuts this year are sorely mistaken. What is a more realistic number for interest rate cuts? First, let’s be clear that the Fed has, indeed, signaled interest rate cuts. In December, they appeared to have penciled in three interest rate cuts for 2024, though economic news and market fluctuations could change their plans.
In the second hour today, the Money Wise guys share warnings on Equity Index Annuities. 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.
