Wednesday, December 16, 2020

contradictory Fed ...

per FOMC minutes this afternoon, Feds decided to keep the rates unchanged which was expected, but they also expect a higher growth rate for 2021 as 4.2% .. a contradiction in itself ... but market always does the right thing; so, teenies jumped from .91 to .95, but returned back to .92 after the Q&A session.

yes, we all are looking forward for a spring opening of the economy, but with so much money supply & stimulus floating around, it could easily turn into untamed inflation, followed by Fed chasing with raising rates, and market dropping big time, as money supply is reduced and S&P not meeting earnings expectations .. but that's lot many predictions in one sentence .. so take it with grain of salt.

No comments:

Post a Comment

why the investors are drinking the coolade investing in AI debt ..?

Because they.are spoiled with returns in technology and other markets which are driven due low interest rates in last 20+ years .. going for...