Have a nice ending Sunday and a successful start to another week full of results. 🍀💰
News from Saturday, 10/14/23 that jumped out at me and again around the Fed.
As we know, the Fed is scheduled to meet on 10/31-1/11. Originally it looked pretty realistic that another interest rate hike was coming. In the end, according to Bloomberg, the Fed is going to extend the pause. So now at the next meeting there should be no increase! 😊 Of course, as usual, they won't let us cheer just yet and although there will now be another pause, it's supposedly not the last word that rates won't be raised again.
As we know the Fed is on thin ice. On the one hand they want to go strong and get inflation to 2%. On the other hand, there are fears of overshooting and triggering a possible recession.
We have high yields on Treasury bonds, which gives the Fed reason to pause, but on the other hand, according to history, it creates concern because these events were followed by a recession. There are also concerns about continued high commodity prices, also due to war unrest around the world, then food prices, a stronger housing market, and a slowdown in the decline in commodity prices. $^NDX-0.2% $^GSPC+0.4% $^DJI+1.5%
So it's quite interesting to watch this situation, and it's quite a roller coaster ride right now, with insider statements changing frequently. How do you investors look at the situation, do you follow news like this on a daily basis or do you not worry about it and just whatever the outcome, it doesn't change your attitude, your strategy? 😊