The Fed’s interest-rate cuts are fueling a stock market ‘melt-up’ — and ruin for some investors
1. Federal Reserve signals risks of further rate cuts by end of 2026. 2. Low borrowing costs may lead to increased investor debt and financial leverage. 3. Financial markets appear frothy with record high stock prices and low volatility. 4. Potential economic shocks could trigger a downturn in asset prices. 5. Investors may face challenges from market timing and valuation rules.