Fed Action and S&P Movement since 2020

Fed sets the stage for two cuts this yr starting in Sept. Probability of market melting up is increasing w/ new SP highs every day last week. Fed action has been the main factor driving

SP total returns for last several yrs.

2020: +18% SP - aggressive Fed rate cuts due to Covid

2021: +29% SP - on hold despite inflation surge

2022: -18% SP- fastest rate hikes since 1970s

2023: +26% SP- on hold with inflation declining

2024: +25% SP- cuts as inflation keeps declining

2025 ytd: +9% SP- on hold so far but cuts likely

The recent resurgence in meme stocks, hot IPOs and SPACs certainly show sone speculative fervor.
Anticipation of possible Fed rate cuts probably supports this risk taking behavior.As Warren Buffett has said, stocks often trade at truly foolish prices, both high and low.