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Stifel has recently advised investors to "sell the first rate cut," expressing skepticism about the belief that Federal Reserve interest rate cuts will bolster the stock market. Stifel strategists described Fed cuts as a "red herring," cautioning that upcoming developments in the bond market could pressure risk assets regardless of the Fed's decisions. They noted that the yield curve's recent behavior, which typically signals economic downturns, suggests challenging economic conditions may lie ahead.Stifel's guidance comes as the 10-year Treasury yield has surpassed the 2-year yield, reversing an earlier recession signal. Historically, such changes in the yield curve have preceded economic slowdowns. In response, Stifel recommends a defensive investment strategy, focusing on undervalued stocks in sectors like consumer staples and healthcare, which are expected to perform well if current bond market trends continue.