“A “Few More Daily Stabs Downward” That Could Eventually Prove to Be a “Final Big Flush”” – Investors on Market Reaction to Fed Rate Increase Expected This Week

Investors are preparing for the markets to take more hits this week after the Fed meets and increases rates again in an effort to curtail inflation. 

The Biden economy is a mess and getting worse.  The Fed is expected to meet this week and increase interest rates by up to 1%.  This would halt the economy but many believe it is necessary to stop inflation from running wild.

Investors interviewed at the Market Watch shared:

Investors got used to “the tailwind for over a decade with falling interest rates” while looking for the Fed to step in with its “put” should the going get rocky, said Courtney at Exencial Wealth Advisors.

“I think (now) the Fed message is ‘you’re not gonna get this tailwind anymore’,” Courtney told MarketWatch on Thursday. “I think markets can grow, but they’re gonna have to grow on their own because the markets are like a greenhouse where the temperatures have to be kept at a certain level all day and all night, and I think that’s the message that markets can and should grow on their own without the greenhouse effect.”

Meanwhile, the Fed’s aggressive stance means investors should be prepared for what may be a “few more daily stabs downward” that could eventually prove to be a “final big flush,” said Liz Young, head of investment strategy at SoFi, in a Thursday note.

“This may sound odd, but if that happens swiftly, meaning within the next couple months, that actually becomes the bull case in my view,” she said. “It could be a quick and painful drop, resulting in a renewed move higher later in the year that’s more durable, as inflation falls more notably.”

People are trying to live with 10% inflation but it is getting tough.

Not many Americans have much faith that Jerome Powell can do anything to stop this inflation rocket ship.

Americans are feeling the Biden inflation pain. Prices are out of this world and Americans know it.

Biden couldn’t do a worse job if he tried. The US economy and everything else is under attack and being destroyed by the corrupt crooks in the Biden Administration.

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