A strange thing happened after the Federal Reserve, the US central bank, announced its sixth rate cut of the year: nothing. Before and after the other five rate cuts this year the stock market reacted with gusto. This time, there was hardly a flicker of recognition.
That is how it should be. Interest rate cuts aren’t there to provide immediate and false relief to the stock market; they don’t have the power suddenly to make bad corporate earnings disappear, or to reverse the losses suffered by millions of investors, retail and institutional, who threw their money at poor companies.
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