YIKES! Fed Says Prepare For Interest Rate Hikes!
Federal Reserves Big Day
If you're a prominent investor, you already are aware of the news of the fed signaling for a
- March interest rate hike.
- Policy tightening.
Be prepared to see new lows in the market for February. Investors are selling off stocks quite a bit and overreacting with speculated information.
What Jerome Powell must do.
- Raise the target range in the next meeting? To the 2% inflation
what it boils down to, it's all hearsay and talks for now. We can only be sure when that moment arises. It is improbable they will implicate anything at this meeting.
Let's move on because when all is said and done. We know it will happen. It is just a matter of when and how much and will only know its impact then.
Today's big swings
If you look at the video 3.06 provides the Global Recession Model in high-risk Zone What we can take.
- Historical very high prices in stocks
- The economy has not performed well
- People out of the workforce
- Federal Reserve increasing interest rates
- Many central banks increasing rates
4.26 shows the NASDAQ & SPX as of today are having significant sell-offs. The markets are concerned and reacting without dealing with rising interest rates in years.
What do the markets remember?
- Performed extremely poorly throughout a hiking cycle.
What's happening in merging markets.
In recent weeks, we have seen the NASDAQ historically drop and then do a complete reversal in the same day.
General advice for the markets currently
- Buy every day
- Buy every week
- Buy every month
Dollar-cost average no matter what.
I think warren buffet said it best "you don't make money when you buy, you don't make money when you sell. You make money when you wait." For the right opportunities. It would be best if you were patient. That is the message here.
6.37 shows charts the GS US Financial Conditions Index While the tightening is increasing, the less favorable stocks are Tech stocks. For example, NASDAQ's new 52-week lows are worrisome, and the last time it was seen like this was in the previous financial crisis.
8.09 QQQ (NASDAQ ETF) Traded Value ($) Suppose you didn't hear the buzz on Monday's trades. This Dow Jones plummeted down over 1000 points and skyrocketed back up, finishing high for the day, which has never happened. The number of people selling with uncertainty feeling a crash and the other feeling it's the dip to buy made this day very interesting for the markets.
RATE UP, PROFITS DOWN = BAD COMBO FOR RISK ASSETS.
- Tech stocks
Conclusion: There is a possibility we are in a correction stage, or we could be heading into a bear market. The only thing we can do is sit tight for now and see how the market digests this information and reacts to it over the coming days—overall, It's all about you and how you want to invest with the information you acquire.