Best stock strategies following a rate cut

Market Overview - The market is experiencing a modest upward trend following a recent rate cut, with Goldman Sachs raising its 12-month S&P target to 7200 [1] - The current market sentiment suggests a bull market, with a primary trend indicating higher prices despite concerns over valuations [2][3] Investment Strategies - Investors are advised not to chase the market but to remain positioned, as many may be forced to chase performance as the year-end approaches [4] - The focus should be on waiting for earnings season, which begins on October 14, as this could present opportunities despite potential volatility [12] Stock Buybacks - Companies have announced unprecedented stock buybacks, with S&P companies committing close to 960 billion year-to-date, significantly exceeding the three-year average of 644 billion [11] - Major financial institutions, including Charles Schwab, Bank of America, Morgan Stanley, and JP Morgan, are actively engaging in buybacks, which could support stock prices [11][10] Earnings Growth - There is an expectation of double-digit earnings growth and a 14% year-over-year increase in free cash flow, which could bolster market performance [8] - The upcoming earnings season is anticipated to be strong, particularly for banks, which may positively influence the overall market [12] Cash Reserves and Market Dynamics - A significant amount of cash, approximately 7 trillion, remains in money market funds, which could eventually flow into equities as interest rates decline [13][14] - The current economic environment, characterized by profit margin expansion, is seen as a key factor supporting stock buybacks and overall market stability [18]