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KIOver the last 100 years, there have been 14 such rate cycles
12 out of the 14 cycles are in which the S&P 500 delivered positive returns for the next 1 year
2 periods - 2001 and 2007 are the ones in which the markets reacted badly.
S&P feel 40% in 2001
S&P fell 54% in 2008
Point to be noted here is that the rate cuts were infused because of a crises. Dot com in 2001 and Lehman in 2008.
The current rate cut is not due to a crises but has already ran up in anticipation of a rate cut and hence I presume we will see a profit taking when the rate cut starts but markets may not significantly fall.
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