The Fed Just Aggressively Cut Interest Rates - Here’s What It Means to You

The Federal Reserve just cut the benchmark federal funds rate by 50 basis points, which is a more aggressive move than many were expecting. In this video, Certified Financial Planner® Matt Frankel discusses what this big rate cut means for your stocks and your day-to-day personal finances.
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[@davidjudy7589]

Looking forward to gains in my REITs! Thanks

[@davidwysocki1004]

Thanks, Matt, for your commentary on today's Fed interest rate cut. While the stock market was up during and shortly after the announcement by Fed Chair Jay Powell, it closed down although not by much percentage-wise. Day-to-day market gyrations don't mean much to me as a long-term dividend growth investor.

[@MattFrankelCFP]

Fair enough. But an extended rate cut cycle could have big implications for your portfolio as an income investor!

[@davidwysocki1004]

@@MattFrankelCFP-True, but it will be all good since I'm fully invested with 40% of my portfolio in REITs and insurance companies (PRU and UNM). Good stuff!

[@morehn]

What does this mean for bonds, such as investment grade and high yield?
I have TLT, LQD, and HYG

[@MattFrankelCFP]

Generally speaking, bond values rise as rates fall. It's more of an effect for longer-term bonds than shorter term, but bond ETF values can generally be expected to gradually rise during a rate cut cycle.

[@morehn]

@@MattFrankelCFP I moved all my bond holdings into XME today.
If rates go down, bonds go up, but isn't that the case for stocks, as well?