Attached is a note by Randy Watts, Executive Vice President and Chief Investment Strategist, and Kenley Scott, Global Sector Strategist, at William O’Neil + Co. on the current state of the market.
Key Points:
- The interest rate cut cycle is likely to continue, with a fourth cut expected in September.
- Across 13 prior cycles average number of cuts was six.
- The economy entered recession in 11 of 13 cases, with exceptions in 1984 and 1998.
- Market history has been broadly positive in the 12 months following the first cut (S&P 500 +13% on average), with two notable exceptions in 2001 and 2008.
