Why US Stocks Will Underperform Once Interest Rates Fall: Alden
- Interest rate cuts likely won’t serve as jet fuel for US stocks, researcher Lyn Alden says.
- Not only are lower rates already priced in, but they could cause international stocks to outperform.
- Here’s what the closest historical parallel to today’s market says about what’s next.
Investors are waiting with bated breath for lower interest rates, but researcher Lyn Alden believes they should have sweaty palms instead.
Markets have been glued to commentary from the Federal Reserve, which will decide how much rate cuts are needed next month. The consensus view from strategists is that more moderate rates will keep the US economy afloat and, by extension, US stocks.
Neither of those conclusions holds much weight…
