NewPower
2021-06-12

In my opinion, S&P 500 had reached the selling zone (4200 to 4400) indicating possible correction around 10 to 15% in the coming months.During the last global financial crisis 2008 as well as Covid-19 last year, the bull market had been triggered by monetary policy by Federal Reserve (interest rate near to zero & Quantitative Easing) and fiscal policy (stimulus packages by US government). Thus the biggest worries for market now is the possible increase in interest rate (due to high inflation rate) and the slow down in bond buying by the Federal Reserve (due to good economy data). The market also worry about Republican party resistance to the Biden's fiscal policy. Therefore if the market correction did occured, all these worries by the market can be alleviated. In short, be very cautious with the market now and be patient. Cheers!

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