U.S. Long-Term Business Cycle and Fed Insurance Cut vs. Fed Recession Cut In recent history, when the U.S. long-term business cycle peaks in the 90th percentile and the Fed cut rates, a recession occurred. Image: Pictet Asset Management
Market Reaction to Fed Insurance Cuts vs. Fed Recession Cuts This chart shows the S&P 500 and 10-year Treasury Note response to Fed insurance cuts vs. Fed recession cuts. There is a big difference for equities, but not too much for bonds. Image: Pictet Wealth Management
10-Year U.S. Treasury Yield and Fed Insurance Rate Cut Chart suggesting a steeper yield curve and higher 10-year U.S. Treasury yields through mid-2020. Image: J.P. Morgan
S&P 500 Index and Fed Insurance Rate Cut Chart suggesting around 5% upside for the S&P 500 Index through mid-2020. Image: J.P. Morgan
U.S. Leading Economic Indicators (LEI) and Fed Insurance Rate Cuts This chart shows that Fed insurance rate cuts can be good news when the U.S. economy slows down. Image: Scotiabank
S&P 500 and Past Easing Cycles The S&P 500 did rather well after easing cycles began, especially during Fed insurance cuts. You may also like “Market Reaction to Fed Insurance Cuts vs. Fed Recession Cuts.” Image: Fidelity Investments