Recommended Stocks & Mutual Funds
in the News
Below are updates of our
recommended stocks and mutual funds as well as market news.
01/22/2008
--- Today's Rate Cut: Stock Market Averages +17% Over Next
Twelve Months After Fed Cuts Rates
Today the Federal Reserve
lowered the federal funds rate by three-quarters of a percentage
point. Charles Reinhard, director of portfolio strategy
at fund manager Neuberger Berman, studied the stock market's
return in periods when the Fed began cutting interest rates.
In ten out of the past eleven rate-cutting cycles, the S&P
500 has risen over the next twelve months after the Fed
began cutting rates. The average return over those twelve
months was +17%.
CNBC polled Wall Street
professionals and found that 97% say the current stock market
weakness will prove to be a buying opportunity over the
period of a year or more. Acting on emotion and pulling
out of the stock market now would very likely be a serious
mistake for long-term investors.
