Important Week: FOMC Meeting, Earnings and Jobs Data
Major market catalysts coming that are on a need to know basis
Since last year, the markets (stock, crypto and real estate) have enjoyed a flood of fiscal stimulus to spur demand. Since then, the S&P, real estate and Bitcoin have seen a parabolic incline. Many investors have seen life changing returns with Doge, GME, Shib, and DWAC but the question begets, how long will this last? This isn’t sustainable and it is directly related to the liquidity tsunami we’ve witnessed.
I believe this is best reflected in the image above where you can see reverse repo market soar to record breaking highs and bank reserves shattering the previous ceiling in 2014. If you’re not very familiar with bank reserves and the reverse repo market, think about it as a way to measure “cash in the system” that’s ready to be used for credit or investments. Simply put, it’s a lot and there’s no coincidence we’ve seen the rise of the meme stock. There’s a ton of cash sloshing around out there.
So far, this year, the S&P finds itself up 22.61%, the NASDAQ up 20.25%, Bitcoin up 59% and housing prices having taken off like a rocket ship.
In this publication, we’re going to talk about the overall state and technical setup of the markets (this will be good for portfolio positioning), important growth stock earnings coming up, the FOMC meeting and potential tapering announcement, and jobs data. Nobody is immune to market volatility and nobody has a crystal ball. It’s helpful to know what to look for when it comes to potential reasons why markets slowdown or decline. In this publication, we are going to look ahead this week and 6-9 months down the road.
Estimated time to read: 15 minutes
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