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Markets initially offered a tepid reaction to the response from G-7 leaders on the COVID-19 coronavirus.
The world's seven largest economic powers said they would use policy tools to provide support to the global economy. But they failed to provide specifics.
Well, we got more clarity when the U.S. Federal Reserve issued an emergency interest rate cut of 50 basis points.
They weren't supposed to meet again until March 17-18.
But they realized the best thing they could do to act in line with the unpredictability of the coronavirus was to cut rates immediately.
After the rate cut, U.S. President Donald Trump tweeted, "The Federal Reserve is cutting but must further ease, and most importantly, come into line with other countries/competitors. We are not playing on a level field. Not fair to USA. It is finally time for the Federal Reserve to LEAD. More easing and cutting!"
So it's safe to say we're on our way to 0% interest rates. And possibly negative ones after that.
Should the global economies come together to prevent a massive outbreak, lower rates would likely fuel a quick rebound of the equity markets as investors pile back into equities and push us back to new records.
That's just how cheap money and asset prices have worked over the last decade.
However, even if this process is more prolonged, now is the best time for investors to start looking for stocks that can outperform in the long term and offer terrific dividends in the process…
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Today, we are digging into three dividend stocks to buy in the wake of the recent market pullback and Fed rate cuts.
Here's what you need to know for tomorrow's trading session.