Fed cuts rates near market peak, historical patterns warn of serious correction. AAII shows stock allocation at 71.2%, cash near four-year lows, echoes late 2021 market peak.

When the Fed cuts rates while $SPY is trading near all-time highs (within 1%), the market usually falls sharply 2–3 months later. That aligns closely with our model’s prediction of a serious correction beginning in February 2026.

Every time rate cuts begin near market peaks, the aftermath has been very bad.

Historically, the pattern is unmistakable:

– Rate cuts in Sep 2007 → disaster followed

– Rate cuts in July 2019 → sharp sell-off in Aug 2019

– Rate cuts in Sep 2024 → 4 months later, Market nose dived from Feb 2025.

_ Rate cut resumes in Sep 2025 – 3 to 4 months later?




The Western world is about to realize:

– We’re heading for something akin to the Great Depression/Recession 2.0

– This is going to force companies to lay off a ton of people

– This will ALSO force companies to adopt automation en masse (historically, recessions accelerate tech adoption)

– Which will result in a massive jobless recovery, from which we might never recover

– The Thiel/Yarvin “accelerate the collapse” crew has lost faith in their own plan

– No one has a plan

S&P 500 was essentially flat in November, in its worst month since April.
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