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Welcome to Animal Spirits, a show about markets, life, and investing.

Join Michael Batnick and Ben Carlson as they talk about what they're reading, writing, and watching.

Michael Batnick and Ben Carlson work for Rit Holt's wealth management.

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and do not reflect the opinion of Ritt Holt's wealth management.

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One of the reasons that we like Why Charts is because they make our job easier and they

send us research ahead of time before we have to ask for it.

And so they sent us last week what happens to the markets

over the past 35 years when the Fed cuts interest rates because the Fed just cut rates

last week. And they show what happens with a 25 basis point cut and a 50 basis point rate cut.

And it's kind of interesting. So they show, they look one year out and for the 25 basis point rate cut

they show the, what do you call it, the Morning Star style box.

So value and growth in small, medium, large stocks.

Pretty much everything's up relatively big after 25 basis point cut on average, but a 50 basis point cut almost everything is down looking out a year.

So here's my take. In the 25 basis point cut they're up like anywhere from 10 to 20 percent in the 50 basis point cut is down from 5 to 15 percent.

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