(5/4/22) Market futures are elevated following two days of volatility and a slow grinding higher; lots of trepidation on Wall St. as the Fed's FOMC meeting convenes today. What the Fed says--or does not say--will affect markets, and in turn, your money. Will the Fed announce a 50-basis-point hike in rates, and a tapering of its balance sheet starting in June--or--will they be more aggressive, hiking rates 75-basis-points, with more, similar rate hikes to come? We suspect the FOMC will do exactly as expected with a more dovish approach to inflation, raising rates only 1/2%. If that is the case, and the Fed hints that inflation may have peaked, that will bode well for stocks. Money flows have remained positive despite market gyrations, and any good news--or expected news--from the Fed could boost markets higher. It would be no surprise to see a market rally up to about the 50-DMA at 4,300, which, at that level, would provide a nice opportunity to rebalance portfolios and reduce risk. Think ahead about the coming headwinds later this year as inflation recedes, but economic growth slows. Markets are still in a downward trend, going back to support levels from September. Even as markets are primed to rally, there is still much resistance overhead. Hosted by RIA Advisors' Chief Investment Strategist, Lance Roberts, CIO Produced by Brent Clanton -------- Get more info & commentary: https://realinvestmentadvice.com/insights/real-investment-daily/ -------- 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/RealInvestmentAdvice/ https://www.linkedin.com/in/realinvestmentadvice/ #FederalReserve #InterestRates #FedTapering #ReflexiveRally #BadNews #GoodNews #BuyBacks #Markets #Money #Investing |
Tags: Featured,newsletter
5 pings