Broadest of Indexes Indicates US in Recession...Rate Hikes Turning To Rate Cuts and QE4?
The Russell 3000 Index is a capitalization-weighted stock market index, maintained by the Russell Investment Group, that seeks to be a benchmark of the entire U.S stock market. It measures the performance of the 3,000 largest publicly held companies incorporated in the American based on market capitalization. It represents approximately 98% of the American public equity market.
The blue columns are the Russell, representing the weekly yoy (year over year) indexed change. The black line the Federal Funds Rate. It should be somewhat obvious that in '00 and '08 as the Russell turned negative on a yoy basis, the Fed began or had already begun rate cuts. However, this time the Fed's determination to hike rates precipitated the downturn in the Russell...which previously had been the signal for the Fed to begin a new rate cut cycle?!?