How investors should play the first rate cut
Australian market participants are all-in on the immaculate soft landing narrative. But history says they need to tread carefully as interest rates come down.
History says that one way or another, this week’s rate cut from the US Federal Reserve will prove to be an inflection point for global markets, and Australian investors.
If Fed chairman Jerome Powell is right, and the 0.5 of a percentage point cut is insurance against any downturn, then the bull market that has been under way since October 2022 might have further to run.
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