Research: Equities roar as Fed eyes next challenge Jan 15, 2020 As equities party like it’s 1999, is Fed ready for a downturn? By Blu Putnam, Chief Economist & Erik Norland, Senior Economist, CME Group In 2020, equities are partying like it’s 1999 The three sectors that led the market in the 1990s also won in 2010s The three weakest sectors in 1990s also did poorly in the 2010s Robust growth in 2020s could boost tech, consumer discretionary stocks It could, however, be detrimental to utilities and consumer staples Read article Is the Fed up to the next challenge? Is the Fed well-equipped to tackle an economic downturn? Cutting already low rates to near zero might not be stimulatory Fed might buy distressed private assets like during Great Recession QE rallied equities but no evidence to show it enhanced growth Watch video SEE MORE ANNOUNCEMENTS
