FED increases rates by 75bps and hints more are coming!

in LeoFinance2 years ago (edited)

Hi HODLers,

Jerome Powell broke the market for once and I don't blame it... It actually exactly as I predicted yesterday.

image.png

What is interesting in this graph is how expectations shifted dramatically in just one quarter! from an expected top of Fed funds at 3.75-3.8% to now 4.5-4.6%!

I could say: "I told you so!" but it won't.

Here is what I wrote yesterday:

I personally believe they will stick to the 75bps BUT they might hint that next time they meet they might do another 75 bps raise if necessary (market is expecting 50bps at the moment).

And this is what they did, they basically said that this hike was the low end of what they might call restrictive policy meaning that there is much more to go. Also, the market was pricing maybe 1% more of raises through the reminder of 2022, it seems it might be closer to 1.25-1.5%.

The economu is slowing down and they are running after inflation which is the worst thing that could happen.

I am sticking with my bearish stance at least for the upcoming month; market did not capitulate yet. I expect corporate profits to drop strongly and layoffs to follow. Once this happen and we have a strong market drop, I will buy the **** out of this crpyto and financial markets :D.

Do you think it is time to Buy the DIP?

In any case, stay safe out there!

Latest articles

Posted Using LeoFinance Beta

Sort:  

Do you think it is time to Buy the DIP?

I thought I did a few weeks ago but looks like I was wrong :)). Maybe next time.

This situation Sounds all too familiar to me 😅

Posted using LeoFinance Mobile

I think that prices will not go deeper. So I am all in. I'm not sure though. The prices may go down further by 25 percent.

Posted Using LeoFinance Beta

I am expecting something similar, let’s see if we are right 😉

Posted using LeoFinance Mobile

A6D11871B5EC481288BC3306844A21D4.png

Posted Using LeoFinance Beta

Haha, can’t blame him… I wish he had done these sooner so we wouldn’t be there today…

Posted using LeoFinance Mobile

This post has been manually curated by @bhattg from Indiaunited community. Join us on our Discord Server.

Do you know that you can earn a passive income by delegating your Leo power to @india-leo account? We share 100 % of the curation rewards with the delegators.

Please contribute to the community by upvoting this comment and posts made by @indiaunited.

Thanks. I appreciate it as always!

Posted using LeoFinance Mobile