Danielle was a guest with Jim Goddard on Talk Digital Network talking about recent developments in the world economy and markets. You can listen to an audio clip of the segment here.
As the US Fed announced a rare inter-meeting rate cut yesterday, North American Treasury yields slumped to record lows in a vote that what’s ailing the world today can’t be resolved by central banks.
As for stock markets, it’s important to note that sustained rate-cutting cycles are not bullish. As shown below in my partner Cory Venable’s chart, the US Fed slashed rates from 6% in 2000 to 1% in 2003, and 5.25% from the cycle peak in 2006 all the way to 0.25% by 2008, and still, 50%+ bear markets unfolded. A drop back to 0.25% this cycle, while probable, is unlikely to prevent a larger than average bear market decline.
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