In 1974 the US market turned up, after a 62% real decline over two years, exactly as the first Fed rate cut took place.

There are three parts. (1) The U.S. stock market bottomed and turned up in 1974. (2) The fall before that bottom was about 62% in real (inflation-adjusted) terms over roughly two years, using the measure GMO uses or a standard real total-return or price index. (3) The turn coincided closely, within about a month, with the first Federal Reserve rate cut of that cycle. True: all three hold, with the real decline within about 55% to 68%. Mostly true: all three hold, but the decline figure is a little outside that range (about 50% to 55% or 68% to 72%), or the timing is off by one to two months. Mixed: two of the three parts hold. Mostly false: only one part holds, for example the bottom was in 1974 but there was no close match with the first cut and the decline is well off 62%. False: none of the parts hold.

Set before the research began.

1. E1 The Nifty Fifty: One-Decision Stocks and the 1973–74 Crash | Market Histories Market Histories · 15 September 2026

   “The S&P 500 closed at 62.28 on 3 October 1974, down 48.2 per cent from the January 1973 peak.”

2. E2 The Nifty Fifty: One-Decision Stocks and the 1973–74 Crash | Market Histories Market Histories · 15 September 2026

   “Consumer prices had risen more than a fifth across the same stretch, so the loss to a holder's purchasing power was closer to 57 per cent.”

3. E3 Full text of Annual Report of the Board of Governors of the Federal Reserve System : 1974 Federal Reserve Bank of St. Louis (FRASER) · 16 July 1975

   “rates that had begun in late 1973. The Federal funds rate, for example—which is watched closely in financial circles as a bellwether of”

4. E4 Record of Policy Actions (Policy Record) Board of Governors of the Federal Reserve System · 5 February 1975

   “Federal Reserve discount rates were reduced at two Reserve Banks from 8 to 7-3/4 per cent, effective on December 9; shortly thereafter, rates were reduced at the remaining 10 Banks.”

5. E5 The Nifty Fifty: One-Decision Stocks and the 1973–74 Crash | Market Histories Market Histories · 15 September 2026

   “The S&P 500 closed at 62.28 on 3 October 1974, down 48.2 per cent from the January 1973 peak.”

6. E6 The Nifty Fifty: One-Decision Stocks and the 1973–74 Crash | Market Histories Market Histories · 15 September 2026

   “Consumer prices had risen more than a fifth across the same stretch, so the loss to a holder's purchasing power was closer to 57 per cent.”

7. E7 The Nifty Fifty: One-Decision Stocks and the 1973–74 Crash | Market Histories Market Histories · 15 September 2026

   “On 11 January 1973 the S&P 500 closed at 120.24 and the Dow Jones Industrial Average at 1,051.70, the highest either index had ever reached.”

8. E8 (none) Board of Governors of the Federal Reserve System (FOMC Record of Policy Actions, December 16-17, 1974) · 5 February 1975

   “Federal Reserve discount rates were reduced at two Reserve Banks from 8 to 7-3/4 per cent, effective on December 9”

9. E9 1973-74 Oil Shock: S&P 500 Fell 48% Swoopr (market history library) · 26 August 2026

   “At the nominal trough of 3 October 1974, the index had lost 56.8 percent of its January 1973 purchasing power, not 48.2 percent.”

10. E10 1973-74 Oil Shock: S&P 500 Fell 48% Swoopr (market history library) · 26 August 2026

    “And the real low did not come in 1974 at all. It came on 12 August 1982, at 62.9 percent below the January 1973 real level, almost eight years after the nominal bottom.”

11. E11 Table Data - Federal Funds Effective Rate Federal Reserve Bank of St. Louis (FRED), source Board of Governors of the Federal Reserve System · 3 August 2020

    “| 1974-07-01 | 12.92 |”

12. E12 Monetary policy in the 1970s and today Jesper Rangvid (personal blog) · 7 April 2024

    “The Fed began cutting rates in July 1974, when inflation was about to peak.”

The S&P 500 hit its nominal low on 3 October 1974, down 48.2% from the January 1973 peak (E1, E7). The loss in purchasing power at that point was about 57% (E2, E9), which falls within the 55–68% range in the criteria. That settles the first two parts. E10 notes that the deepest real low came only in 1982, but the criteria ask about the 1974 turn. The timing part fails: E12 says the Fed began cutting in July 1974, about three months before the bottom. The discount-rate cut effective 9 December 1974 (E4, E8) came about two months after it, so neither date is within the roughly one-month window the claim needs.