To The Moon

The Federal Reserve unleashed its most aggressive interest-rate increase strategy in decades and signaled more hikes to come as it battles stubbornly high inflation.

At Wednesday's FOMC meeting, the Fed raised its target range for the federal funds rate by a third consecutive 75 basis points, from 2.25-2.5% to 3-3.25%, the highest level since early 2008, and the latest interest rate plot also showed a hawk tone.

Global capital markets experienced Black Friday on Friday

The$DJIA(.DJI)$ fell 1.6% to close at 29,590.4, a June low and the lowest since November 2020. The $S&P 500(.SPX)$ fell 1.72% to 3,693.23, down 4.65% for the week and 23% for the year. The$NASDAQ(.IXIC)$ fell 1.8 per cent to 10,867.9, wiping more than $2.8 trillion off the market in a single week.

The market turmoil has rattled investors, with the American Association of Individual Investors (AAII) market sentiment index hitting a new low for the year and bears topping 60 percent. According to Wall Street data:

More than 33 million put options were traded on Friday, the busiest trading day since records began in 1992. Meanwhile, put option volume on the $SPDR S&P 500 ETF Trust(SPY)$ , the world's largest exchange-traded fund tracking the S&P 500 index, has surged to an all-time high.

Under the pessimistic expectations, investment sentiment also fell to the bottom. The latest survey from Bank of America shows that fund managers have cut their equity exposure to historically low levels amid recession fears, while their cash holdings are at all-time highs.

What Analysts think

Goldman Sachs issued a report on the 22nd:

A sustained rise in US real interest rates will put pressure on US equity valuations, so the year-end target price for the S&P 500 was cut to 3,600 from 4,300 previously

Micheal Hartnett, chief U.S. equity strategist at Bank of America, said:

With inflation, interest rates, and recession shocks still to come, there is no doubt that investor confidence is at its lowest level since the 2008 financial crisis and the S&P 500 is expected to trade in a range of 3,300 to 3,500

How will the U.S. stock market develop? What do you think?

Is now a good time to go short? Would you go short?

How to operate in the turbulence of the market in order to retire?

Feel free to share your thoughts in the comments section and split the tiger coins!