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Make Rate Cuts Work for You. Own These Stocks, Bonds, and Funds.

1. Market anticipates rate cuts, fueling optimism despite only one cut being likely. 2. S&P 500 up 12% this year; strategists predict nearing 7000 next year. 3. Cyclical sectors could thrive if economy remains strong amid expected rate cuts. 4. Healthcare, staples, and MLPs are defensive options amid economic uncertainty. 5. Rate cuts may have varying historical impacts on cyclicals versus defensives.

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FAQ

Why Bullish?

The anticipation of Fed rate cuts supports further market gains. Historical performance shows cyclical stocks outperform defensives when cuts are fewer, which might apply to SPY's components.

How important is it?

The article's focus on anticipated Fed cuts aligns closely with SPY's current trajectory and investor sentiment, suggesting a notable likelihood of price movement.

Why Short Term?

Immediate market reactions to Fed meetings stem from rate change anticipations. Given the uncertainty of the number of cuts, short-term adjustments in SPY could be observed.

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