Macro risks continue to support bearish price action as Bullard today mentioned the possibilities of a .75 basis hike. This, in my opinion, wont happen but it still creates pause for investors. The reason why this would be such an extreme development is that these aggressive rate hikes act as a catalyst for an economic recession by slowing credit growth in the United States.
More or less, this environment is chaotic and it will continue to be. But, in this situation, this provides an extraordinary amount of opportunity. From a very positive perspective, sentiment is extremely bearish because of these developments and to many investors they can’t (or don’t want to) see past today and what is happening today.
Despite these headwinds, investors should understand that it wont always be like this and someday the tides will change. By thinking about the days where things will change, how would you have wished to make your decisions today? What actions are going to support your future financial goals?
I ask those questions because when thinking of tomorrow, it takes investors away from today. Besides, investing is allocating capital into a better tomorrow at the end of the day. Thinking short term won’t truly get you there. But delayed gratification, patience and hard work will.
Stay Tuned, Stay Classy
Dillon
Expect Short Term Downside
Although in general I agree with the title for sure. At least choppiness for the next week or so.
I could have sworn I saw somewhere that Bullard also said that a hike greater than 50bpt at a time isn’t out of question but is unlikely. I think he said this sometime toward the end of the day, which is why we saw that spike. I’m at the gym atm but if I find the news I’ll post it.