2023-05-10 22:02:03
Just so that everyone understand correctly. Today we had a big drop in the Core CPI from 5,1 to 4,7%. This is the main thing that FED watches. It is the largest drop we had since the peak and since funds rate are now at 5.25% and both CPI & core CPI are below this puts enough room for FED to pause the rate hikes which I believe will be announced on the next FOMC meeting on June 14th
That is the reason we seen such pump today but all in all we gotta play the chart first ofc
In history usually fed pause meant sell stocks and buy bonds (aka you buy a bond that yields a lot, this means it grows in value(price))
Also before bull market most of these should be checked as yes. So far we are only waiting for rate drops and recession which should be the last part of this cycle and the anticipated drop this fall, till then there is still some room for growth
Inflation shock: YES
Interest rate shock: YES
Bear market: YES
Credit failures: YES - more to come
Interest rate drops:
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