Good afternoon, The flight away from technology stocks in 2024 has been noticeable. And you'll hear many reasons why. But the more interesting question you may want to ask is: Where is the money going? The Federal Reserve is getting ready to cut interest rates. That means investors who have been sitting on the sidelines are about to put that capital to work. And sure, the magnificent 7 mega-cap technology stocks will get their fair share of that capital. But investors will also be looking to branch out, and here’s why. Higher interest rates make the cost of borrowing more expensive. Investors who lived through the 1970s or even the 1990s are correct when they say that a federal funds rate of 5% is historically low. But it doesn't feel that way when we have spent the better part of 15 years at rates near 0%. That's a hard reality for consumers and for businesses. Many smaller companies rely on borrowing, and the higher cost of capital has been weighing on earnings. That meant many investors stayed away from mid-cap and small-cap stocks. However, with a September rate cut of at least 25 basis points (0.25%) a near certainty, now is a good time to look for mid-cap stocks to buy. History shows that stocks will typically underperform after a rate cut. That’s because falling interest rates are a form of stimulus. An economy that needs to be stimulated is generally not considered healthy. But if you’re playing the long game, that shouldn’t matter. Because over time, a looser monetary policy is generally good for corporate profits. And one of the single best predictors of stock price growth is earnings (profit) growth. We created this special presentation to give you seven mid-cap stocks that have catalysts in place to help push them higher as investors look for value. View the 7 Mid-Cap Stocks That Are Ready to Rally The DividendStocks.com Team
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