Mindset, Grit & Failure
What happens to the stock market after the Fed cuts rates?
Answered independently in 2 episodes. Every line below is verbatim from the transcript, timestamped to the moment it was said.
The short answer
What the archive says
01Stewman claims every time the Fed cuts rates, a 20-55% decline in overall stock market value has followed within 12 months — cuts signal they're chasing a problem like unemployment. source →
02Historically, every Fed rate cut has been followed within 3 to 12 months by a 20 to 55 percent decline in the overall stock market, and Stewman argues 5.5 percent — not 3 or 7.5 — is the sweet spot for mortgage rates. source →
In their words
What was actually said
So you're really living on about $35,000 to $40,000 a year after these taxes and health insurance on a W2 job with a couple of kids in $120,000 a year's salary. It's fucking crazy. And right now, I'm somewhat of a main street economist because I've been in the financial markets for 20 years, but anytime the Fed cuts rates, they're chasing problems, and unemployment is at an all certain high right now.
The episodes