Unemployment LevelShort
The bearish case for risk-on assets during rate cuts.
It’s interesting to observe how, historically, every time the Federal Reserve cuts interest rates, we tend to see a rise in unemployment and a decline in the S&P 500. While rate cuts are often used to stimulate the economy, they can signal underlying economic challenges that lead to market downturns and job losses. 📉📊 Here are two charts showing the relationship between interest rates, unemployment, and the S&P 500 over time.
Having said that, I'm open to the idea of a 'This time is different!' scenario and a 'soft landing,' especially given how aggressively the Fed has raised interest rates this time.
Having said that, I'm open to the idea of a 'This time is different!' scenario and a 'soft landing,' especially given how aggressively the Fed has raised interest rates this time.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.