To The Moon

The recent rhetoric from Jerome Powell has been hawkish saying that the Feds "will keep at it until the job is done".

The August CPI report showed that inflation is at 8.3%, slightly lower than July's number but still persistently high.  Inflation is like a bad boy that refuses to be controlled and the Feds are like a concerned parent trying to discipline him. 

We had a rude awakening last Tuesday when the US markets had its worst day since June 2020.  All 3 indexes closed lower with Nasdaq down 5.2%, the S&P500 fell 4.3% and Dow Jones dropped 3.9%.

All eyes are now on the Feds meeting this week.  The markets have already priced in a 75 bp increase.  But what it matters most is the Feds comments.  If  it is still hawkish and worse still, if the increase is 100bp, the markets will almost certainly drop.   However if the comments are more dovish or a surprising 50bp increase, the markets will rejoice and jump.

No matter what the outcome maybe, I will continue to dollar cost average into my favourite quality stocks like Apple, Microsoft.  These will continue to grow exponentially in the long term. 

With high inflation, it is also important to stay invested as not doing so, will see an erosion of the intrinsic value of my hard earned dollars.  

I embrace volatility and see every market sell down as the best opportunity to buy heavily discounted quality stocks to hold long term.  This will help me achieve  my ultimate goal of FIRE - Financial Independence Retire Early!

@MillionaireTiger@TigerStars@Tiger_chat@TigerEvents@CaptainTiger