(12/16/21) Markets loved the Fed's announcement that tapering will commence, and the rate of change in rates will be accelerate: Three interest rate hikes in 2022, and three more in 2023. If inflation continues to rage (now termed "non-transitory"), there is a likelihood those rate hikes will become even more fast and furious. This more-hawkish mood of the Fed did not deter markets, rising sharply on the announcement, and the S&P could hit 4700 over the next few days. Markets are, however, very over-bought, limiting the upside somewhat. The recent selling has been a function of mutual fund "window dressing" as year-end approaches. Of continuing concern lately has been the lack of volume--even in yesterday's strong rally. And, markets are now set-up for the classic, end-of-the-year rally. The first five days of January will see mutual funds resetting their positions in the New Year, and we're going to be a little more cautious in our outlooks, with significant headwinds coming our way: tighter monetary policy, weaker economic growth, shrinking profit margins, etc. - Hosted by RIA Advisors Chief Investment Strategist, Lance Roberts -------- Get more info & commentary: https://realinvestmentadvice.com/news... -------- Watch the video version of this report by subscribing to our YouTube channel: -8bTs&list=PLVT8LcWPeAujOhIFDH3jRhuLDpscQaq16&index=1 -------- Register for our next Candid Coffee: https://us06web.zoom.us/webinar/register/9816369327340/WN_8UCalLNwRKOiI97F0L7pww -------- Visit our Site: www.realinvestmentadvice.com Contact Us: 1-855-RIA-PLAN -------- Subscribe to RIA Pro: https://riapro.net/home -------- Connect with us on social: https://twitter.com/RealInvAdvice https://twitter.com/LanceRoberts https://www.facebook.com/RealInvestme... https://www.linkedin.com/in/realinves... #MarketRally #FederalReserve #FedTaper #InterestRates #EconomicGrowth #Markets #Money #investing |
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