Investing is unpredictable.
Even after looking at charts or the news, it’s hard to predict how the market will respond.
Case in point? Investors’ reaction to the Federal Reserve’s FOMC, or Federal Open Market Committee meeting to discuss future policies on inflation and interest rates.
Normally, one wouldn’t predict bond yields falling, growth stocks rebounding and a big fall in the “reopening” trade.
But that’s what we got.
In today’s video, I explain the anomaly … and what sectors I believe you should invest in.
Overprivileged Interest Rates
Some Fed governors apparently feel inflation may be higher than initially expected. There’s a chance they’ll raise interest rates in 2023. On that news, investors fled to growth stocks and bonds, and sold out of commodity stocks.
With such a topsy-turvy situation, it’s hard to know what the markets will do next.
Don’t worry though, I have some answers for you.
You’ll find out:
- What the three predicted responses to the FOMC meeting were and why they were expected.
- The reason I believe the news on interest rates is overblown and why this response is short term.
- How the return to fundamentals and investing in two specific sectors will keep you safe during volatile times such as this.
- And more.
Click here to watch this week’s video or click on the image below:
Editor, The Bauman Letter