According to ChainCatcher, the beginning of the Federal Reserve’s easing cycle should be seen as an important signal to increase stock exposure.
Chris Galipeau, senior market strategist at Franklin Templeton Institute, said history shows that when the Fed cuts rates during economic expansions, the S&P 500 index rises an average of 16.66% in the 12 months after the first rate cut. When the Fed cuts rates during economic expansions, the S&P 500 index has a maximum average decline of 4.91%. He said that since the Fed cut rates in 1990, large-cap and small-cap stocks have had the strongest growth in the 12 months after the first rate cut. "Therefore, we believe that any pullback is a buying opportunity," Galipeau added. (Jinshi)
