Search Results for: fed

I think 2022 and early 2023 will be the year of big tech growth stocks.

You heard me right. I said “growth” stocks, not “value” stocks.

Since mid-2021, the market started pricing in higher interest rates. That impacted the valuation of tech companies based on discounted cash flow pricing models. And that, in turn, drove prices down on most tech growth stocks.

Now though, with the U.S. economy posting negative GDP last week, the Federal Reserve will have to tread very carefully regarding its interest rate policy.

If the Fed indicates any dovish change in its longer-term interest rate policy, we could see a huge rush of capital back into big tech growth stocks.

I don’t think the Fed will change its narrative anytime soon (for risk of losing credibility). Still, traders are going to see the same opportunity I’m seeing, and that’s going to cause small rallies as traders start to position themselves for the future in big tech companies like this one.

Read on to learn how you can position yourself for the future with two new trades.

A year ago, the Fed had no plan to combat rising prices. Now they want the world to know they’ve got a plan to beat back what looks like increasingly sticky inflation because now their credibility is at stake.

That plan, which should be pre-set, steady, transparent, and formally announced as “forward guidance,” is instead going to be made up every six weeks when the Federal Open Market Committee (FOMC) meets.

Whether to raise the fed funds rate 25 basis points, 50 basis points, or 75 basis points (a basis point is one one-hundredth of a percentage point) at the FOMC’s upcoming May 3-4 meeting, or any subsequent meeting, isn’t set. And that is upending both stock and bond markets, and proof the Fed’s out of control.

The Fed raising rates isn’t going to kill inflation. There’s no way they could ever raise rates enough to kill it, and that gives us an opportunity.

Read more about the Fed’s inevitable failure to fix inflation and how you should play it.

There are many attractive places to put your money as Jay Powell struggles to solve his inflation problem. Here are a few of them…

Jay Powell is acting spooked… He’s feeling the pressure, and that might make him act unpredictably. It’s why we’re worried about what comes next.

As the Fed tries to fix one problem by raising interest rates, it’s going to make another serious problem far, far worse…

If we were in charge of the Fed, the first item on our agenda would tank the economy… but allow the healing to begin.

It doesn’t take an economist to see the parallels between the drought out West and the troubles in the financial world. After generations of mismanagement and nearsighted policy, the reservoir is running dry.

Jesus could turn water into wine. But Jay Powell can’t turn fake money into a real economy.

Big news in the crypto world… Jay Powell said stablecoins need regulation. The world of money is changing.

Yesterday’s official U.S. Federal Reserve “statement” on the economy, unemployment, inflation, and interest rates was simple, straightforward and unsurprising – in short, just what the markets needed.

The few upgraded projections in the central bank’s commentary – which might have scared investors – were tempered with coddling commentary about staying-the-low-interest-rate course until the Fed’s dual mandates are met.

And if that wasn’t clear and comforting enough, Fed Chairman Jerome Powell in his follow-up press conference, handled some tough questions with temperate answers, assuaging our fears with a tacit promise that no surprises would jump out anytime soon.