How Will Fed Rate Cuts Impact Client Portfolios?
How will the S&P 500 react with Fed rate cuts?
(And what does it mean for clients?)
History offers some key insights.
In the 12 rate-cutting cycles since 1965:
- Stocks have averaged a modest 5% return in the following year
- If a recession occurred, the average was –3%
- However, if a recession was avoided, average returns were 18% higher
This outlook is supported by the expectation for muted returns in the coming decade, making it more crucial for investors to protect their assets while maintaining a robust strategy for growth.
We can’t predict the future, but we can offer more predictability. Help clients find growth and lock it in with Lincoln OptiBlend® 5 fixed indexed annuity. Highlights include:
- If the S&P 500 is flat or positive, clients can lock in 7.50% with our 1 Year S&P 500 Performance Triggered account1…
- …or lock in 9.25% with our 1 Year S&P 500 10% Daily Risk Control Trigger1 (check current results here2)
- All accounts offer 100% protection in a down year
1For deposits of $100,000 or more. Annual effective rates are based on the current rates at the time the application is signed and are subject to any rate hold procedures. Subsequent rates may be higher or lower than the initial rates and may differ from those used for new contracts or for contracts issued at different times.
2Select “Excess Return” from the dropdown above the chart.