Goldman Sachs analysts stated in a report to clients that due to the Federal Reserve's upcoming expected rate cut cycle, American households' allocation of funds to the stock market will only "slightly" shift from credit to stocks. The Fed slashed interest rates by 50 basis points last month, down to a range of 4.75% - 5.00%, and is expected to implement more cuts before the end of this year.
Goldman Sachs analysts wrote: "A stable interest rate close to 4% indicates that investors will continue to have alternative investments that are more attractive than stocks, but the degree will be lower than in past years."