Recommend this page to a friend. Our panel of experts answers your mutual fund questions. 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. It's fuel for the fire,'' says Robert Doll, chief investment officer for Merrill Lynch Investment Managers. Today's lower stock prices look attractive. Low prices are no guarantee of a rally, but it's better to buy low than high.