Its pretty clear from the recent moves that the market has moved back into risk on mode, which is interesting because its also pretty clear that the market absorbed the FOMC meeting last week w/ hardly much to the downside. That kinda signals to me that really the big investors arent too concerned with interest rates rising, because they have already priced it into their models, as opposed to inflation which was not priced in, hence the past two months correction to risky growth stocks.
With all that said, I still cant imagine that an FOMC meeting will occur where the FED announces interest rate increases and the market doesnt fall at all
For those who have been in the market longer than me, can you remember a time where we were at ATH's and an FOMC announcement of fed funds rate hikes did NOT cause a fall? Furthermore, if there always was a fall, is there usually a number of days prior to the FOMC meetings that the selloffs begin, or do people ride that risk right into the announcement itself?
Im not one to believe in timing the markets, but sometimes things are a bit too obvious about what will spur a downside catalyst. We've already expended the inflation fears, biden+congress most likely intend to announce even more spending right into elections, and covid fears are abating + recovery is decent with still lots of home purchases. There's not much else out there to act as a catalyst for a blown off top
it must be tapering or interest rates, and so that relies on the FOMC announcements and the fed president press releases
Submitted July 04, 2021 at 01:22AM by xxx69harambe69xxx https://ift.tt/3xkABFU
