The bearish case for risk-on assets during rate cuts.

It’s interesting to observe how, historically, every time the Federal Reserve cuts interest rates, we tend to see a rise in unemployment and a decline in the S&P 500. While rate cuts are often used to stimulate the economy, they can signal underlying economic challenges that lead to market downturns and job losses. 📉📊 Here are two charts showing the relationship between interest rates, unemployment, and the S&P 500 over time.

Having said that, I'm open to the idea of a 'This time is different!' scenario and a 'soft landing,' especially given how aggressively the Fed has raised interest rates this time.