Data: Whenever the cumulative rate cut reaches 2%, the S&P 500 tends to rise by an average of 13.9%.
BlockBeats News, August 24th, analysts say the U.S. labor market is rapidly deteriorating, with the latest data revising down a staggering -258,000 job positions for just May and June, more than the total population of Scottsdale, Arizona. So far this year, 461,000 U.S. job positions have been revised down, with many leading indicators of the labor market collapsing.
All of this means that the Federal Reserve will cut interest rates to curb inflation. However, as inflation rebounds, those without assets will face a situation similar to the post-pandemic era. Wage growth will lag behind inflation, and the wealth gap will widen. When the Fed has lowered rates to within 2% historically, as has happened in the past 20 times, the S&P 500 index has averaged a +13.9% increase over the next 12 months, and asset owners will party just like they did in 2021.
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