Two weeks ago, I said the stock market is like a mousetrap.
It’s so dependent on the Federal Reserve that the slightest hints of policy change cause extreme reactions.
I was right.
Yesterday, the market snapped briefly. Is this a sign of things to come?
In today’s video, I explain what disturbed the cheese … and whether we can expect more of the same.
You also have the chance to win a free one-year subscription to The Bauman Letter. Simply be the first viewer to correctly “guess Ted’s T-shirt.”
What’s Going on With the Fed?
There are many causes for the pullback yesterday, but as I’ve said before … the market is extremely sensitive to the response of the Fed.
Yesterday’s mousetrap reaction to the minutes released for the Fed’s recent Federal Open Market Committee meeting is a perfect example.
The Fed stated last year that they were going to keep a loose money policy and try to keep inflation up, rebalance the economy and increase wages. Now the market has designated this role to the Fed as its highest priority, yet in reality … it has no such obligation.
So, when it shows any sign of “blinking” or hinting at a return to normalcy, the market reacts wildly. And when the Fed does blink, will you be prepared for it?
I discuss my thoughts on this matter…
Watch now to find out:
- Other concerns (besides the Fed) that could have caused yesterday’s brief pullback.
- How I know the economy isn’t growing as fast as people thought it would.
- Possible outcomes if the Fed decides to reverse its “emergency policies” and unwind.
- And more.
Click here to watch this week’s video or click on the image below:
Kind regards,
Ted Bauman
Editor, The Bauman Letter
