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Mar '23 (edited) in General discussion
Inflation 6%, expected 6%. Market rally
As Fed stepped in to save the market (people deposits in Silicon Valley Bank - see my previous post), the inflation year over year for the month of Feb is 6%, which the forecast was 6% as well.
This leads to a market rally.
While we were discussing potentially how to short the market in Investing Accelerator, the market quickly turnaround and limited any shorting / hedging opportunities.
This is good as I am overall bullish for the market.
Fed bails out will help most of the long term portfolio to grow in the coming months.
Next week will be a week of interest rate increase announcement. Previously Goldman Sachs forecast Fed to increase rate by 0.25%
Given that Fed is bailing these banks, now the traders are expecting an overall 0.5% to 0.75% interest rate CUT for this year.
For the March interest rate meeting, my forecast would be no interest rate increase which will lead to a further market rally.
What do you think?
Cheers,
Eric Seto, CPA CIM
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Eric Seto
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Inflation 6%, expected 6%. Market rally
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