Hi, I recently started to look at the different economic variables, what makes them fluctuate, their effects, etc. However, there's still many more knowledge I need to get to understand better the economy, etc. As I was reading article on the Fed fund rates, the 10 year treasury yield and more. I stumbled on this article: https://www.marketwatch.com/story/what-signals-the-top-of-a-bull-market-in-stocks-not-rising-interest-rates-11613490352
Basically, it says that in the last 7 out of the 9 bull markets came to an end when the Fed lowered the fed fund rate. Therefore, I don't understand why the market would be down if the fed fund rate goes down. My logic was that if it goes down, then people would borrow more money, because the cost would be less.
Also, in the article, it says: " the most recent move in the Federal Funds rate was last March, when the Fed cut it by a full percentage point. " After that, there was a decline in the market. Could it be that it's not because of the market but because of many other variables?
How can I measure the impact of multiple economic variables together? Thanks!
Submitted February 20, 2021 at 11:55AM by DimesnCrowns https://ift.tt/3aEYZJ6
