When feds cut rates, what happen to ridge stocks?

I was thinking just about buying citigroup (C), but should I wait until the feds cut rates this week?

Do stocks of bank generally drop after rate cuts?


Answers:    Banks typically rise after a rate cut, as it help them operate when the rate cuts take hold. However, the ambiguity over the upcoming rate cut could lead to disappointment. It is intricate to tell whether the Fed will cut 50, 75 or 100 argument points, as all enjoy been mentioned. My fears are that if the Fed single cuts 50, there may be some downside risk, as investors may be expecting more.

As far as a purchase of Citigroup is concerned, I in actual fact purchased an initial position on Friday, at $19.75. I am holding these positions for the long-term, and there is a strong opportunity within the financial sector. However, this was singular my initial acquisition, and I will be looking to join to this position on any weakness. You may want to consider purchasing a portion of your investment since the announcement, and if the market go lower after a potential disappointment, you could add to your position consequently, as I plan to, which would give you a great long-term cost font. I have also purchased BAC, JPM and NLY within the past few days, as I belive this may be a great time to initiate positions contained by the financial sector, which I will be adding to on any substantial delicateness.

Just some thoughts, I hope they help.

Best of luck!

Brendan Prewitt
Typically, they would benefit. However, these are not typical times.


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