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Stock impact report

Coming Fed Rate Cuts Will Be No Panacea [Seeking Alpha]

Federal National Mortgage Association (FNMA) 
Company Research Source: Seeking Alpha
Investors continue to bid up equities, believing that coming rate cuts from the Federal Reserve will be some sort of panacea for the economy and the markets. However, initial rate cuts will have only marginal impacts on the greater economy and the start of central bank easing has come just before bear markets in the recent past. Investors should also be wary, as the overall market is trading at extreme valuations that have preceded several major declines. We take a look at the impacts of rate cuts and the market's very stretched valuation levels in the paragraphs below. Looking for a helping hand in the market? Members of The Biotech Forum get exclusive ideas and guidance to navigate any climate. Learn More » VladGans/E+ via Getty Images Investors are taking Fed Chairman Powell's comments from Jackson Hole last Friday around it is now time for monetary policy to ' adjust ' in the most positive light. However, this is akin to going to a chiropractor that has performed many Show less Read more
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