The Federal Reserve started taking actions this month that are likely to lead to lower interest rates. It just announced a 50-basis-point reduction to the federal funds rate, and there could be more cuts coming before the end of the year, especially if the U.S. economy shows further signs of slowing.
For investors, a rate-cutting environment could be an opportune time to buy stocks that could benefit from reduced rates. The following three companies that could see significant upsides from falling interest rates.
Here’s why I think these three companies with cheap valuations could be excellent stocks to add to your portfolio today.
This post originally appeared at The Motley Fool.