Why the Fed might raise interest rates still rising United States stock market?

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According to MarketWatch report, now that the Fed may soon raise interest rates, stronger dollar will thus, United States on how the market can continue to rise?


In fact, at the beginning of the Fed tightening phase, investors are advised to go long the stock market, because over the past 30 years, in the early and middle stage of the tightening cycle, the stock market often showing a trend of boom.


Traditional intelligence always advised investors "don't confront the Fed", however in the past 30-year cycle, this sentence is wrong. Because the Fed may begin its tightening cycle, so long the stock market, which seems to run counter to intuition.


However, in the long run, freedom of thought is the only way consensus is better than the majority. Current United States rising ability of the stock market, investors remained nervous and pessimistic, only because the Fed started tightening cycle, and the traditional intelligence claimed that the "Fed and don't fight."


According to statistics, the cash held by the Fund managers now are near record highs, investors ' stock market atmosphere down to historic lows, does not care about the strong stock market recently. Recent crises in Europe, has hit the United States stock market.


But so far there has been a period of time, stock markets have reacted. United Kingdom off Ou Gong before the vote and the Fed raising interest rates again, Dow Jones down to 17,000, should not be surprised.


But in the end these two things should not cause too much impact. If the next two or three quarters of stronger corporate profits, as expected, the shares is expected to rise. Investors should stick with strong financial enterprises, and the early entry, hold, and discipline to expand profits.

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