Stock prices are theoretically the discounted value of future dividends (the DDM model) where the discount rate is the risk-free rate. If the risk-free rate goes down, all else being equal, the stock price should go up; if the risk-free rate goes up, all else being equal the stock price should go down.
In this instance, if there is a recession where corporate profits fall but the fed responds with rate cuts, is it likely that stock prices could go up substantially a la 2020?
Seeing that Bostic mildly suggested a lower terminal rate today made the S&P 500 go up by 1% is making me really think that at the EOD, it's just Fed Fed Fed
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