Rate Cuts, Market Risks, and Gold

The market is eager for interest rate cuts, but investors should be careful what they wish for. Lower rates are typically seen as bullish for stocks. But JPMorgan is warning that the upcoming Federal Reserve decision could actually spark a selloff. Traders have already sent markets higher in anticipation of easier policy. If a cut is announced on September 17, it could trigger a “sell the news” event. Traders may sell stocks after the news because the good outcome was already expected and priced in. That makes now the time to brace your portfolio before the Fed acts.