The entire financial community is breathtaking with uncertain expectations just 24 hours before the next Federal Reserve Board.
Remember that line from one of the most iconic cult follow movies ever, Rocky Horror Picture Show??
I have to admit, I couldn’t stand the movie. I saw it on VHS at some point in the 80’s or 90’s, but it wasn’t quite appealing except for some catchy songs and Tim Curry’s performance as Dr. Frank N. Ferter.
But despite my personal feelings about it, one of the symbolic lines is simply said by Frank N. Ferter …
My friends and I rarely say the word without pulling out the moment like Ferter.
But now that we’re waiting for the news to be announced by the Federal Reserve on Wednesday, the financial community as a whole feels this way.
With a lot of uncertainty surrounding our economy, everything It may happen tomorrow.
Waiting … out of breath
Of course, at this point, there is disagreement with Federal Reserve Chair Jerome Powell about whether the company will raise interest rates, but no one is exactly what will happen when they finally postpone. May be worried.
What moved the market yesterday was the expectation of a recession in the Fed’s stimulus package.
The Federal Reserve has suggested that it is very likely that interest rates will be raised multiple times this year, but the first hike is not expected this week.
Instead, the Federal Open Market Committee, which sets the policy, could make fun of the higher rates that come at the March meeting.
I hate teasing … as most people do.
I would rather let them strip off the band-aids and start raising their rates so that we can do what we have to do when the bears are roaming outside.
Sometimes it’s easier (and better) to put a bear. Let’s welcome the sumbitch into the house and deal with him. now. He’s going in anyway, and maybe if we open the door for him we can mitigate some of the damage.
A few weeks ago, Powell told Congress: 2022 will be the year we will take steps towards normalization. “
What does “normalization” mean to the Fed?
Of course, “away from these settings” means that it is time for Powell to raise interest rates. And even before the pandemic, the interest rate has been set to a value close to zero.
Those Americans feeling a higher price crisis want to tighten this policy, hoping to slow the rate of rising inflation.
However, Wall Street is less enthusiastic about changing interest rates, as it is likely to mean the end of the bull market since 2009.
But nothing really can be done about it.
In fact, even Las Vegas participates in it, and ODDS is placed at a frequency of price increases.
For example, the betting market shows that there is a 31% chance that there will be at least four interest rate hikes by the end of this year …
But these same markets are decent, with the Fed tightening a bit slower (three rate hikes: 26% probability), just as the Fed tightens a little faster (five rate hikes: 20% chance). I am pricing with the odds. In any case, 2022 could result in more rate hikes than 10 years or more.
It ’s wonderful, is n’t it?
But the point from all of this is the fact that you’ve received advance notice of these hikes … and you’ve been warned in advance, right?
There are multiple steps we can take to prepare for the coming bear, which we have outlined several times.
However, the best way to prepare for a future financial shift is not just information, but guidance.
What makes Adam O’Dell’s Green Zone Fortunes a great tool for future recessions is the fact that his unique system has nothing to do with speculation, trends or popularity.
Green Zone Fortunes uses only hard data to find only the recommendations that are most likely to be profitable. In this short video, you can hear Adam explain some of the nuances of the system.
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But you can always choose to put your financial destiny in your own hands. But can I climb Mount Everest alone when I have access to a trusted and experienced Sherpa?
There will be an update to this story after tomorrow’s Fed meeting.
Until then, within the friendly range of Money Moves offices, you can find me doing a time warp … again.
“But we live in the modern world, and no matter what talent you have, it may sound a bit ridiculous, but I … it’s absolutely yours. I think it’s a thing. You have a duty to solve them. “- Tim Curry
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