Investors should not worry about the market exiting due to interest rate cuts, according to Bank of America. The S&P 500 hit an all-time high this week after the Federal Reserve issued its first rate cut in four years. Rate cuts are generally considered good news for investors because the move lowers the cost of borrowing money, which can juice business profits. But some have been wondering whether the post-cut earnings will be diluted given how much stocks rose on the announcement. However, Bank of America strategist Savita Subramanian said that data going back to the 1970s show that how equity was created before the initial cut has historically not affected where it went afterward. “Concerns that equities have been ‘driven’ by the Fed are unfounded, in our view,” Subramanian said in a note to clients published on Friday, two days after the central bank announced its 50 basis point rate cut. He said another way, when looking historically, Subramanian found no “relationship” between earnings before the Fed’s first cut and 12-month forward performance. In addition, he said the S & P 500, which is sitting near its 52-week high, is headed for a cut that is important “even lower.” He specifically pointed to 1995, when the S&P 500 rose nearly 23% in the year following the initial rate cut — even after a 26% rally in a move that pushed the broader index within 1% of record highs. Overall, history provides grounds for optimism. The IS&P 500 is up 11% on average for the year following a positive initial estimate. If you only look at situations where a recession didn’t happen, the average rally jumps by more than 20%.