Will the rebound continue? Here are some food for thoughts. While the FOMC announcement on hike and QT meets market expectations, and Powell comments is more dovish this time, does it means there is a change to the general trend? Hikes will still come and to Fed, 2.4% is the neutral rate so more hikes will definitely come. QT is also going to start and will start to affect the liquidity eventually. So while the FOMC announcement looks dovish this time, more hikes and QT is unavoidable. Valuation will be affected and owners of high valuation stocks will need to be cautious. Tech stocks had a good run during 2020 and 2021 so they are one of those with higher than normal valuation.
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