Man, these Fed rate cuts are really starting to mess with everything. I mean, sure, they were supposed to help, but now I’m feeling the pinch everywhere. My savings account is basically giving me nothing, and the stock market’s all over the place.
Tell me about it. My 401k? Practically useless right now. I’ve got over $500k in there, but with everything going on, I’m wondering if I should just cash out and figure something else out. I’m getting closer to retirement, and the idea of relying on that fund is stressing me out.
It’s rough out there. Honestly, I had to pick up a second job just to make sure we stay afloat. The cost of living keeps going up, and the value of my investments seems to be going down. Feels like a losing game sometimes.
That’s why I started getting serious about budgeting and financial planning back in 2020 when the pandemic hit. It’s been a game-changer for me. At first, it was tough, but now, I’m feeling way more secure, and my investments are actually growing.
How’d you pull that off? I’ve been trying to stick to a budget, but with all this uncertainty, it feels impossible to get ahead, let alone plan for the future.
I didn’t figure it out on my own, trust me. I started working with a financial advisor, Desiree Ruth Hoffman, around the time everything went sideways in 2020. She’s been incredible with helping me navigate all this craziness-budgeting, investments, everything. Honestly, I’m even considering early retirement because things have been going so well.
.25 is going to happen, but the chatter is .50 in play? Hey, we may get 3 rates cuts this year as some predicted in the Winter and Spring. Last year they predicted 6, that would have meant things now would be worse in the economy, but that didn't play out this year so far. It shows you the economy is not in desperate shape, but it does need to be "tweaked," which is the way it may transpire. Good for US.
The **federal funds rate** is the interest rate at which banks lend reserve balances to other banks overnight. As of now, the federal funds rate is set between **5.25% and 5.50%**³. ### Why Cuts Affect the Stock Market When the Federal Reserve cuts the federal funds rate, it generally has several effects on the stock market: 1. **Lower Borrowing Costs**: Reduced interest rates make borrowing cheaper for businesses and consumers. This can lead to increased spending and investment, boosting corporate profits and, consequently, stock prices⁶. 2. **Increased Consumer Spending**: With lower interest rates, consumers are more likely to take out loans for big-ticket items like homes and cars. This increased spending can drive up the revenues of companies, positively impacting their stock prices⁷. 3. **Higher Valuations**: Lower interest rates reduce the discount rate used in valuing future cash flows. This makes future earnings more valuable in present terms, often leading to higher stock valuations⁶. 4. **Shift from Bonds to Stocks**: Lower interest rates make bonds less attractive compared to stocks, as the returns on bonds decrease. Investors may shift their money from bonds to stocks, driving up stock prices[^10^]. 5. **Economic Stimulus**: Rate cuts are often used to stimulate the economy during slowdowns. A healthier economy generally leads to better business performance and higher stock prices⁸. However, it's important to note that while rate cuts can boost the stock market, they can also lead to overvalued stocks and potential market corrections if the underlying economic conditions don't improve⁸. Source: 8/23/2024 (1) What Is The Federal Funds Rate? - Forbes Advisor. www.forbes.com/advisor/investing/federal-funds-rate/. (2) How Do Interest Rates Affect the Stock Market? - Investopedia. www.investopedia.com/investing/how-interest-rates-affect-stock-market/. (3) What Happens When The Fed Cuts Interest Rates? - Forbes. www.forbes.com/advisor/investing/fed-cuts-interest-rates/. (4) Impact of Federal Reserve Interest Rate Changes - Investopedia. www.investopedia.com/articles/investing/010616/impact-fed-interest-rate-hike.asp. (5) How Will Rate Cuts Impact Stocks | Nasdaq. www.nasdaq.com/articles/how-will-rate-cuts-impact-stocks. (6) Federal Funds Effective Rate (FEDFUNDS) | FRED | St. Louis Fed. fred.stlouisfed.org/series/fedfunds. (7) Effective Federal Funds Rate - FEDERAL RESERVE BANK of NEW YORK. www.newyorkfed.org/markets/reference-rates/effr. (8) Federal funds rate: Current rate and historical changes | CNN .... www.cnn.com/cnn-underscored/money/federal-funds-rate. (9) Effective Federal Funds Rate (I:EFFRND) - YCharts. ycharts.com/indicators/effective_federal_funds_rate. (10) How Do Rising Interest Rates Affect The Stock Market? - Forbes. www.forbes.com/advisor/investing/how-interest-rates-affect-stock-market/.
Man, these Fed rate cuts are really starting to mess with everything. I mean, sure, they were supposed to help, but now I’m feeling the pinch everywhere. My savings account is basically giving me nothing, and the stock market’s all over the place.
Tell me about it. My 401k? Practically useless right now. I’ve got over $500k in there, but with everything going on, I’m wondering if I should just cash out and figure something else out. I’m getting closer to retirement, and the idea of relying on that fund is stressing me out.
It’s rough out there. Honestly, I had to pick up a second job just to make sure we stay afloat. The cost of living keeps going up, and the value of my investments seems to be going down. Feels like a losing game sometimes.
That’s why I started getting serious about budgeting and financial planning back in 2020 when the pandemic hit. It’s been a game-changer for me. At first, it was tough, but now, I’m feeling way more secure, and my investments are actually growing.
How’d you pull that off? I’ve been trying to stick to a budget, but with all this uncertainty, it feels impossible to get ahead, let alone plan for the future.
I didn’t figure it out on my own, trust me. I started working with a financial advisor, Desiree Ruth Hoffman, around the time everything went sideways in 2020. She’s been incredible with helping me navigate all this craziness-budgeting, investments, everything. Honestly, I’m even considering early retirement because things have been going so well.
He was pretty clear 🕊️🕊️🕊️
Another FED success. Wealth transferred from poor to rich. New cycle to begin soon.
.25 is going to happen, but the chatter is .50 in play? Hey, we may get 3 rates cuts this year as some predicted in the Winter and Spring. Last year they predicted 6, that would have meant things now would be worse in the economy, but that didn't play out this year so far. It shows you the economy is not in desperate shape, but it does need to be "tweaked," which is the way it may transpire. Good for US.
What is a rate cut ? Why would it affect the stock in market
Bruhv you gotta study, this moves every equity imaginable
The **federal funds rate** is the interest rate at which banks lend reserve balances to other banks overnight. As of now, the federal funds rate is set between **5.25% and 5.50%**³.
### Why Cuts Affect the Stock Market
When the Federal Reserve cuts the federal funds rate, it generally has several effects on the stock market:
1. **Lower Borrowing Costs**: Reduced interest rates make borrowing cheaper for businesses and consumers. This can lead to increased spending and investment, boosting corporate profits and, consequently, stock prices⁶.
2. **Increased Consumer Spending**: With lower interest rates, consumers are more likely to take out loans for big-ticket items like homes and cars. This increased spending can drive up the revenues of companies, positively impacting their stock prices⁷.
3. **Higher Valuations**: Lower interest rates reduce the discount rate used in valuing future cash flows. This makes future earnings more valuable in present terms, often leading to higher stock valuations⁶.
4. **Shift from Bonds to Stocks**: Lower interest rates make bonds less attractive compared to stocks, as the returns on bonds decrease. Investors may shift their money from bonds to stocks, driving up stock prices[^10^].
5. **Economic Stimulus**: Rate cuts are often used to stimulate the economy during slowdowns. A healthier economy generally leads to better business performance and higher stock prices⁸.
However, it's important to note that while rate cuts can boost the stock market, they can also lead to overvalued stocks and potential market corrections if the underlying economic conditions don't improve⁸.
Source: 8/23/2024
(1) What Is The Federal Funds Rate? - Forbes Advisor. www.forbes.com/advisor/investing/federal-funds-rate/.
(2) How Do Interest Rates Affect the Stock Market? - Investopedia. www.investopedia.com/investing/how-interest-rates-affect-stock-market/.
(3) What Happens When The Fed Cuts Interest Rates? - Forbes. www.forbes.com/advisor/investing/fed-cuts-interest-rates/.
(4) Impact of Federal Reserve Interest Rate Changes - Investopedia. www.investopedia.com/articles/investing/010616/impact-fed-interest-rate-hike.asp.
(5) How Will Rate Cuts Impact Stocks | Nasdaq. www.nasdaq.com/articles/how-will-rate-cuts-impact-stocks.
(6) Federal Funds Effective Rate (FEDFUNDS) | FRED | St. Louis Fed. fred.stlouisfed.org/series/fedfunds.
(7) Effective Federal Funds Rate - FEDERAL RESERVE BANK of NEW YORK. www.newyorkfed.org/markets/reference-rates/effr.
(8) Federal funds rate: Current rate and historical changes | CNN .... www.cnn.com/cnn-underscored/money/federal-funds-rate.
(9) Effective Federal Funds Rate (I:EFFRND) - YCharts. ycharts.com/indicators/effective_federal_funds_rate.
(10) How Do Rising Interest Rates Affect The Stock Market? - Forbes. www.forbes.com/advisor/investing/how-interest-rates-affect-stock-market/.
please study interest rates, they are more important to stocks than even earnings.
Calls into today might have been the easiest money made all year. What idiot went into this bearish pahahaha
Home inflation incoming!
This guy is a joke (communist)
Yes he's the joke 🤣
Your comment is a weird joke 🥴🤣