After the recent 0.5% rate cut by the Fed, many analysts believe the stock market ($SPX) could face a decline, as similar moves in the past (in 2001 and 2007) led to bear markets. The key question is whether the Fed will be able to avoid a recession through a "soft landing" for the economy. If it succeeds, it would be the first time in history that a 0.5% rate cut at the start of a cycle didn’t trigger a bear market.

However, the probability of the S&P 500 dropping remains high, especially given the historical parallels. At the same time, liquidity is expected to shift into risk-on assets, such as small-cap stocks (Russell 2000), emerging markets, and cryptocurrencies ($BTC, $ETH), along with other altcoins.

It looks like exciting times are ahead in the financial markets!