Most strategists believe that once the Fed begins to bring interest rates down, stocks will rise, as in the past. Some market observers even say that we have now "the lowest-risk, highest-reward environment possible." But will history repeat? It is true that Fed rate cuts have led to rising stock prices most of the time; since 1921 they averaged between 15% and 17.5% for the twelve-month period subsequent to the second or third cut. But there are differences between then and now.
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