Featured in Longbow Arrows: Showin' Some Love

Unintended Consequences

History says that if rates are cut due to weaker activity, equities tend to struggle.  ASR has this great chart demonstrating this fact.  Basically, slower growth translates into lower earnings which translate into lower multiples, which outweigh any potential positive impact from lower rates.  There was an ave earnings drawdown of -11%.

Reference to the Article: Showin' Some Love