No Load Fund/ETF Investing: Effects Of The Interest Rate Cut

For most of this year (and last), Wall Street traders have been hoping that the Federal Reserve would cut interest rates, a whish that they can now finally cross off their list. Market reaction was swift and euphoric with all major indexes gaining handsomely last week.

By the market’s sharp up move you could get the impression that all of the world’s problems have been resolved in one final swoop. Far from it! Perception is not the same as reality, especially in Wall Street world.

Minyanville had an article featuring a list of things that have changed after the rate cut and a list of things that didn’t change. While the jury is still out on the longer term effects of the rate change, short term only stock market investors have been the immediate beneficiaries.