Scotfree

The Great Fed Rate Cutting Myth: Look Out Below

You didn't go back far enough. At federalreserve.gov, click on monetary policy and check the table titled "Intended Federal Funds Rate." From July 95 to Jan 96, the Fed cut rates three times by a total of three-quarters of a point to 5.25. The cuts sustained one of the great bull markets in history. Current P/Es are more like 1995 than 2000. Whether we will remain recession-free, as in 1995 but not 2001, remains to be seen.