To The Moon

As the Earnings season comes to an end, the US stock market had fewer ups and downs, with the $NASDAQ(.IXIC)$ up 1.36%; $DJIA(.DJI)$ up 1.18%; $S&P 500(.SPX)$ up 1.36% by the close of trading.

However, a big event of this week is coming! On Thursday 3 a.m. SGT , the Fed will release the November FOMC minutes.

Good Expectations of Market vs. Hawkish Fed Officials

After the release of CPI at the beginning of the month, the market predicted that the Fed would slow down its rate hikes and raise rates by 50 bps in December. However, the speeches of the Fed officials were very hawkish.

data from cmegroup

1) Minneapolis Fed President Kashkari said:

It should not stop until it's clear that inflation has peaked.

2) St. Louis Fed President Bullard said

rates will need to be between about 5% to 7% to meet policymakers’ goal of being “sufficiently restrictive” to curb inflation near a four-decade high.

3) Mary Daly, President of the Federal Reserve Board of San Francisco said

The Fed may need to raise interest rates by at least another 1 percentage point, and thereafter consider pausing rate hikes to assess the impact of monetary policy on inflation.

Analysts Stay Cautious and Suggest These Sectors

Many market views that the likelihood of a dovish policy in the near future is low, and analysts have been cautious in their stance.

1) Citi strategist Alex Saunders said:

In the current stagflationary environment, you should sell US stocks and buy commodities and bonds as investment targets.

2) Invesco also urged

investors to shift their exposure to defensive stocks and increase their holdings of U.S. Treasuries and U.S. investment-grade credit.

To learn more about US Treasuries, you can click Investors Long the US Treasuries? 2 ETF To Watch

3) Richard Bernstein Advisors advises investors

to focus on "necessity" equities such as consumer staples, healthcare and quality dividend payers.

US stock market will be closed for the Thanksgiving holiday this Thursday and will close early on Friday.

How do you interpret the Nov. FOMC minutes?

What other sectors do you think worth investing?

How do you think US stocks will move on Friday after the minutes are released?

Join our topic to win at least 50 coins~

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