March 25, 2020
Rate cuts are designed to propel markets in the short-term. However, history is not on the side of longer-term equity performance following unexpected Fed news. Weak fundamentals, typically, are likely to be reflected in a steepening yield curve, as investors expect the Fed to continue to slash rates.
Traders Magazine shared OptionMetrics’ Head of Quantitative Research Garrett DeSimone’s latest piece ‘Emergency Rate Cuts and Beware of the Bull Steepener.’