Stocks skyrocketed after the Federal Reserve announced an unexpected half-point interest rate cut. Walk, don't run. But if you're on the sidelines, some experts say this might be a good time to start moving back into the stock market. The Fed cut rates to keep the economy out of recession. Stock investors love rate cuts because they stimulate the economy.
Lower rates make it cheaper for companies to borrow and invest in new plants and equipment.
But that's not the only reason. Lower rates on money funds and bank CDs push money into the stock market. CD rates should fall, too. Today's lower stock prices look attractive. Low prices are no guarantee of a rally, but it's better to buy low than high.