What history tells us about fed day

We’re now just one day away from the start of the Federal Reserve’s interest-rate cutting cycle. [Header]( What History Tells Us About Fed Day Dear reader, We’re now just one day away from the start of the Federal Reserve’s interest-rate cutting cycle. The odds that the central bank will be more aggressive have increased in the last few days. Now, it looks like it will start things off with a bang. There’s a two-in-three chance it will cut the federal-funds rate by 50 basis points (0.50%). I’ve discussed the potential of both a 25- and 50-basis-point rate cut in the past. You can view each as either bullish or bearish depending on where you’re coming from and what your opinion of the Fed is. --------------------------------------------------------------- “Hidden” Computer Code = Monthly Income? [GIF-1](Everyday folks can collect “crypto royalties”... In other words, income from holding your crypto. And the best part is: You do NOT need a lot of money (only $100 to start)... And you do NOT need a lot of free time (these payments are already pre programmed into the computer code)... [Click here to watch my presentation](. --------------------------------------------------------------- So it shouldn’t come as a surprise to see that the results of a Google search asking “how will stocks react to the Fed cutting interest rates?” are wide ranging and highly inconclusive. The truth is nobody really knows how investors will react after tomorrow’s announcement. Regardless of how stocks trade, long-term investors shouldn’t change their strategies. You should still continue to hold on to and invest in solid companies. But if you’re a trader, you might want to buckle up. Get ready for some wild swings – in both directions – the moment Fed Chairman Jerome Powell makes his announcement. [MMI Sep 17 Intraday] As you can see in the chart above, stocks often make dramatic moves during the last two hours of trading days when the Fed makes interest rate decisions. Volatility is even more dramatic on days when the central bank cuts rates (the green line). So here’s my final educated guess regarding what to expect tomorrow… I believe that the Fed will lower interest rates by 50 basis points. Stocks will initially rally, followed by a couple hours of wild swings. By the time the closing bell rings, I expect the market will be up or down by at least 1.5%. The chart below highlights how large the average S&P 500 moves are on Fed days, and tomorrow should be no different. That should make for a fun day for traders. [MMI Sept 17 Performance 2] For long-term investors, it may be a bit more nerve-racking. It may be worth taking the afternoon off to enjoy a fun hobby instead. Traders, I suggest getting a good night’s rest to prepare for tomorrow’s big day. As always, I’ll keep you updated on the aftermath. Here’s to the future, [Matt McCall signature] Matt McCall Editor, Market Insights Check Out My Latest Podcast [STEP 16]( Many investors believe we’re in the midst of a sizable market pullback. But it’s not as bad as most folks think. [On this new episode of the SteadyTrade Podcast](, Tim Bohen and I discuss what exactly is going on in the market… and how to take advantage of it from two perspectives. Two big questions are looming over investors today… Is the pullback in large tech stocks a great buying opportunity? And should you consider diversifying out of well-known tech stocks and into other sectors of the market? Tim and I share our strategies. [Click here to learn the details](. © Centurion Publishing 13809 Research Blvd, Suite 500, Austin, TX 78750 [CenturionPub.com]( *Results are not typical. Past performance does not indicate future results. All investing carries risk. Our Privacy Policy, along with our Term & Conditions, governs your use of this site. By using our site, or by accepting the Terms of Use (via opt-in, checkbox, pop-up, or clicking an email link confirming the same), you agree to be bound by our Terms & Conditions and our Privacy Policy. If you have provided personal, billing, or other voluntarily provided information, you may access, review, and make changes to it via instructions found on the Website or by replying to this email. To manage your receipt of marketing and non-transactional communications, you may unsubscribe by clicking the “unsubscribe” link located on the bottom of any marketing email. Emails related to the purchase or delivery of orders are provided automatically – Customers are not able to opt out of transactional emails. We will try to accommodate any requests related to the management of Personal Information in a timely manner. However, it is not always possible to completely remove or modify information in our databases (for example, if we have a legal obligation to keep it for certain timeframes, for example).If you have any questions, simply reply to this email or visit our website []( to view our official policies. To Unsubscribe [Click Here](