Member-only story
Sell Your Stock Now?
Fed’s Policy vs Inflation
Buying, selling, or holding stocks are tough investment decisions. The stock market is impacted by many factors, like Covid, the War in Ukraine, the Fed’s policy, and most importantly — the fear of people.
Starting from Jan. 4, 2021, the market kindly ends its 13 years of bullish trends and enters into bearish trends. Bearish trends can last from a few months to many years. During a bear market, the stock market will sometimes pull back from its low, but most times live under the 200 Moving Average.
At Jackson Hole, the Fed made clear to the public that they would raise more rates to fight inflation, and below is the market expectation for Fed’s rate :
If the Fed raises more rates, there will be more pain for the stock market in the short or long run. Most people will like a soft landing for the stock market when facing the Fed’s policy, but is it possible?
See the history chat below from Charlie Bilello:
