Fed interest-rate cuts aren't always beneficial for stocks, especially if they signal an impending recession. While lower rates can initially boost stock prices, as companies benefit from reduced borrowing costs, the long-term impact depends on the broader economic context. Historical data from 1984 to 2019 shows that stocks often decline in the weeks following a rate cut if the economy starts to contract. In such cases, bonds tend to outperform equities, offering a safer investment during economic downturns. However, if a recession is avoided, stocks generally outperform bonds in the long run.