The economy will be stimulated. Which stocks will benefit first?
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Probably those related to real estate investment. Seems like real estate, because it almost always uses substantial leverage, is most sensitive to interest rates.
Of course it depends on which interest rates go down. If only the fed rate goes down, followed by T-bills and similar, but the longer term rates don’t change much, then the effect will be muted.
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Small caps, such as IWM, as we’ve seen in the last couple of days after Powell’s testimony.
DB2
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