Interest rates have quickly become the story for investors…
The Federal Reserve began its rate-cutting cycle earlier this month. Stocks soared after the central bank announced a 50-basis-point cut.
Bonds and other fixed-income investments were already ahead of the curve, though. Specifically, mortgage rates have been falling for months. They’ve dropped more than one percentage point over the past year.
This trend is great for potential homebuyers. But according to history, it’s also a great sign for stocks… And we could see a 16% rally over the year to come.
This post originally appeared at DailyWealth.