JDhope89
2022-04-30

The market will continue to stay weak before the FOMC meeting on 4-5 May. Once the Fed hikes the rate by 50bps as anticipated by the market, there should be a temporary relief to prices in the short term.

However, uncertainties will be an overhanging concern arising from the China restrictions, Ukraine war and the uncertainty from future fedrate hikes.

IMHO, in order for sustainable recovery forward, the most important factor is China lifting the covid restrictions to ease the supply disruptions causing the cost push inflation experienced by the world now. Ukraine war ending will have a beneficial effect as they are also a world supplier of wheat and other commodities that can drive up costs. And lastly, it will help if theFed provides a fixed dot plot schedule of hikes instead of giving vague comments like data dependent hikes.

Hope you find this a useful read!

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • CrystalRose
    2022-04-30
    CrystalRose
    I am still optimistic about the established companies with complete fundamentals, and their stock prices are very stable, especially Apple and Microsoft.
    • JDhope89: 
      Add based on your own liquidity and comfort levels!
  • littlesweetie
    2022-04-30
    littlesweetie
    Agree with the author. The earnings season also failed to save the stock market, so we should be cautious in investing in the short term.
    • JDhope89: 
      Good to take some profits if any, and some possible trades could be made!
  • MatthewWalter
    2022-04-30
    MatthewWalter
    Thank you for sharing. Even if the Fed raises interest rates, I think the downward trend in the market will continue for some time.
    • JDhope89: 
      Yes it might but near term we cannot predict. Fed must do a U turn first and become supportive of the market first before there will be some confidence returned back to markets
  • JDhope89
    2022-05-01
    JDhope89
    Could be a nice short term trade!
  • VictorLin
    2022-04-30
    VictorLin
    Like
  • Milliamwong
    2022-04-30
    Milliamwong
    觉得可以
Leave a comment