MARKETS TODAY @2:20 PM EST
Sept 21 (Vica Partners) Dow down .68%, S&P 500 down .66%, Nasdaq down .79%
Stocks turn negative following Wednesday’s 2 p.m. ET as the Federal Reserve has acted with an expected with three-quarters of a percentage point hike. and signaled more large increases to come in new projections showing its policy rate rising to 4.40% by the end of this year and 4.60% in 2023.
Market today
Look for minimal daily stock losses and some recovery as the 0.75 percentage point hike has already been priced in.
Inflation can turn into deflation
The Federal Reserve will be forced to cut interest rates in 2023 if a deep recession occurs. The cure for inflation is not just raising rates!
We see a significant policy change coming by late Spring of 2023 with Powell reversing direction… just look at 12 month declining lower commodity pricing and new reports on rising retail inventories. Yearly commodity prices drops include: iron ore -59%, copper -28%, crude oil -37%.
Solid strategy for these type of market days ….
We suggest investing in companies that have solid balance sheets and offer dividends.
Best to continue to cost average buy value stocks and resist most all tech and growth stocks where companies have negative margins. Our Teams forecast a negative 12%-15% valuation correction for speculative stocks.
*** Look to Index ETF’s like SPY to outperform stocks and most managed funds
*** Energy is the Top Performing Sector in S&P 500 Year to Date
