Buy the dip or sell the stock after FED decision?
If you believe the market will recover over time and you’re investing for the long term, buying during a dip can be a good opportunity to acquire stocks at a discount.
Look for stocks or sectors with strong fundamentals that are undervalued due to market panic, not because of underlying issues.
If your focus is short-term, consider cutting losses if the downturn is likely to continue or if a key support level break.
If the drop is due to Federal Reserve interest rate hikes, higher rates often pressure stocks, especially high-growth ones, as borrowing costs rise.
Do you have enough cash on opportunities without overextending yourself? Rate hikes may affect certain sectors (like tech or real estate) more than others. Defensive sectors (e.g., utilities or consumer staples) might perform better.
If you’re unsure, consider strategy with your long-term goals.
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