The #1 Question About the Fed’s Rate Cut...

Will Powell signal a stronger market? Published By Money & Markets, LLC. September 17, 2024 Published By Money & Markets, LLC. September 17, 2024 [Turn Your Images On] [Turn Your Images On] From The Desk of [Adam O'Dell]( Editor, [Money & Markets Daily]( The #1 Question About the Fed’s Rate Cut… Money & Markets Daily, Tomorrow at 2 p.m. Eastern Standard Time, the U.S. Federal Reserve will make the most important announcement of 2024. That’s when the Fed will announce its first rate cut in four years. It might not sound like a huge deal — until you start thinking back over everything we've been through… In the last four years alone, we’ve seen a global pandemic … not one but two contentious presidential elections … the highest inflation in a generation … and the fastest rate-hiking cycle in decades… As the oft-repeated saying goes: “There are decades where nothing happens, and there are weeks where decades happen.” And we’ve had quite a few of those weeks in the past few years. Now, it seems like the coast is finally clear. And Fed Chair Jerome Powell may have actually delivered the much-lauded “soft landing,” and now we’ve got a whole new wave of opportunities on the horizon. But there’s still one critical question left to answer… Anatomy of a Turnaround As recently as two months ago, most Wall Street analysts and experts figured inflation was here to stay. They expected inflation levels to stay relatively high, with Powell holding his ground on high rates through the end of the year. But that all changed, almost on a dime… It all started with May’s Consumer Price Index (CPI) print. The index’s year-over-year change came in at 3%, which was both lower than projections and May’s year-over-year reading. The data revealed that inflation was cooling off faster than expected. By the index’s month-over-month measure, consumer prices actually fell. That was the first instance of falling prices since 2021 … and surely welcome news for every American household. In short, inflation was finally cooling off. And with inflation cooling off, the Fed would be cutting interest rates far sooner than anyone expected… Then, once rates come down, a whole host of small- and mid-cap stocks would have greater access to financing and debt — making them more competitive. I issued a small-cap trade recommendation that afternoon, and paid-up Green Zone Fortunes subscribers received a briefing on what I called “The Most Important Week of 2024” as we began shifting our strategy. We weren’t alone, either. Since that CPI release in June, we’ve seen a transformative shift in the stock market. The mega-cap “Magnificent Seven” tech stocks that dominated last year’s returns are no longer outpacing the S&P 500. Meanwhile, key indicators (like the advance-decline ratio) are showing a groundswell of interest in small-cap stocks. Fortunately, if you’ve been keeping up with Matt Clark and me here in Money & Markets Daily (or if you’re a subscriber to services like Green Zone Fortunes, Max Profit Alert and 10X Stocks), then you’re already ahead of the curve on this new mega trend. And now, there’s just one missing piece of the puzzle left to put into place… --------------------------------------------------------------- [[WARNING] Tech Bubble to Pop September 18?!]( A rare market catalyst virtually guaranteed to take place Wednesday, September 18 could trigger this multi-trillion dollar tech bubble to pop.  Now is the time to prepare.  If you make the wrong move in the next few days, it could be what makes or breaks your financial future for years to come.  [Click Here To Watch Adam O’Dell’s Emergency Tech Bubble Briefing.]( --------------------------------------------------------------- Powell Calling His Shot Wall Street’s failure to predict Powell’s rate cuts is a perfect example of why I prefer to do my own research — and why I created systems like my Green Zone Power Ratings in the first place. Mainstream experts love to broadcast absolute certainty and then quietly rush to a new point of view as soon as the market takes a turn. I prefer to remain cautiously optimistic while preparing my portfolios and readers for the most likely (and profitable) outcomes. Up until this June, experts across the board were confident that Powell wouldn’t cut rates before January 2025. Now, they’re all certain that he will cut rates tomorrow. But they still won’t agree on how big of an interest rate cut the Fed will make… If Powell chooses the conservative approach, he’ll cut the benchmark rate by just 0.25%. The smaller cut would indicate the Fed sees the economy as healthy, but they’re still worried about stoking inflation again by cutting too much. The Fed could also double that cut and reduce rates by 0.50%. This would indicate the central bank is more concerned with stimulating the economy and avoiding a potential recession. The CME FedWatch indicator has been slowly shifting to the latter, with 65% of experts now arguing for a larger cut: [Turn Your Images On] Either way, the most important news is that rates are coming down. And that will have an impact on every stock in our portfolios going forward. (If you’d like to know more about how the Fed’s rate cuts will impact YOUR bottom line, then [click here to review my emergency briefing before tomorrow's meeting](. I've found four small stocks that are in a perfect position to run higher — no matter tomorrow's outcome.) To good profits, [Adam O'Dell]( Editor, [Money & Markets Daily]( --------------------------------------------------------------- Check Out More From Money & Markets Daily: - [COUNTDOWN TO RATE CUT DAY]( - [CUT THROUGH THE NOISE WITH OUR RATINGS SYSTEM]( - [ELECTION MARKET VOLATILITY IN 4 CHARTS]( --------------------------------------------------------------- [Turn Your Images On]( Privacy Policy The Money & Markets, 702 Cathedral Street, Baltimore, MD 21201. To ensure that you receive future issues of Money & Markets, please add info@mb.moneyandmarkets.com to your address book or [whitelist]( within your spam settings. For customer service questions or issues, please contact us for assistance. The mailbox associated with this email address is not monitored, so please do not reply. Your feedback is very important to us so if you would like to contact us with a question or comment, please click here: [( Legal Notice: This work is based on what we've learned as financial journalists. 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The mailbox associated with this email address is not monitored, so please do not reply. Your feedback is very important to us so if you would like to contact us with a question or comment, please click here: [( Legal Notice: This work is based on what we've learned as financial journalists. It may contain errors and you should not base investment decisions solely on what you read here. It's your money and your responsibility. Nothing herein should be considered personalized investment advice. Although our employees may answer general customer service questions, they are not licensed to address your particular investment situation. Our track record is based on hypothetical results and may not reflect the same results as actual trades. Likewise, past performance is no guarantee of future returns. Certain investments carry large potential rewards but also large potential risk. Don't trade in these markets with money you can't afford to lose. Money & Markets permits editors of a publication to recommend a security to subscribers that they own themselves. However, in no circumstance may an editor sell a security before our subscribers have a fair opportunity to exit. Any exit after a buy recommendation is made and prior to issuing a sell notification is forbidden. The length of time an editor must wait after subscribers have been advised to exit a play depends on the type of publication. (c) 2024 Money & Markets, LLC. All Rights Reserved. Protected by copyright laws of the United States and treaties. This Newsletter may only be used pursuant to the subscription agreement. Any reproduction, copying, or redistribution, (electronic or otherwise) in whole or in part, is strictly prohibited without the express written permission of Money & Markets. 702 Cathedral Street, Baltimore, MD 21201. (TEL: 800-684-8471) Remove your email from this list: [Click here to Unsubscribe](