The Fed increased rates for the first time since 2018. So what happened? The increase was telegraphed and not a surprise. But the Fed also indicated increases are coming six more times . The stock market proved resilient and had a good day yesterday, thank you! But what happened to the bond market? Bond traders didn’t buy Powells rosy comments about the economy. The result in an inverted yield curve for the first time since 2020 Between the 5 and 10 year Fawk. The gap between the 3 year and and 10 year yields inverted, although briefly, for the first time since 2007. 2007 ring a bell. I get night sweats thinking of 2007. these are time honored signs of an impending economic slowdown and recession. Mortgage rates move above 4% for the first time since 2019.
Be smart right now. opportunity nears.
ps I did very well in my economics classes at SC, but I’m just a fan of studying economic trends and don’t consider myself an expert.
Retail investors have kept the market as stable as its been institutional have parked billions of cash on the sidelines
i read that right now the retail people are excited to buy dips but more are coming. And that as the reality of long term and repeated rate hikes sink in. And as the market continues sideways or volatility that retail investors won’t have the stomach for it and will bail. That could cause us to revisit the depths we just saw or moreso.
its one reason I was and am scared and am trying to hurry the calendar to get rid of these put obligations I have while I can Fewer then better. When everything ticked up again suddenly I went from being upside down on about 6-8 to upside down on just rivian. We will see how this plays out
on the plus side I guess some of my puts are apple at $150. Amazon at $2670 and Google at $2600. J and j at $1600. Fb at $175. All stocks that if I bought at those prices would be great buys. Problem is to get those prices I had to spin out of my previous positions that were higher Double down and throw to the future. Meaning I’ll have to buy even more than I originally committed to. Which means if they all collapse I’ll have to buy way more than the actual money I have. So bargain or not. I’ll be begging you all for loans lol