The Federal Reserve is widely expected to cut interest rates by 25 basis points Wednesday afternoon, and conventional economic wisdom suggests that will cause stocks to rise. But conventional wisdom hasn’t reflected reality the last two times the Fed ended a period of tightening with a rate cut. The most recent example came in September 2007, when the Fed announced a 50 basis point cut from 5.25% to 4.75%. The S&P 500 peaked about three weeks later before diving into the Great Recession—the rate cut would have been a perfect time to get out of the market, not get in. It was a similar story when the Fed cut rates on ... (full story)