bullish
The Crazy Market Rally Explained
SUMMARY
- Despite admitting that economic growth is clearly slowing down, the Fed just hiked by another 75 basis points and reiterated the path of least resistance from here is well represented by the Dot Plot: more hikes ahead - all the way to Fed Funds at 3.75%!
- And yet, markets have staged a humongous rally led by the most valuation intensive and risk sentiment driven asset classes: Nasdaq and Crypto.
- So, what the heck?! It all boils down to how one single sentence Powell pronounced was able to affect the probability distributions investors were projecting for different asset classes.
Does it sound complicated? Bear with me: it’s not!
Get started on the Smartkarma Research Network with a complimentary Preview Pass to:
- Unlock all research summaries
- Follow top, independent analysts
- Receive personalised alerts and emails
- Access Briefings, Analytics, and Events
Upgrade anytime to our paid plans for full-length research, real-time analyst discussions, and more.
Join a thriving community of 45,000+ investors, including the top global asset managers managing over $13trn in assets.
or
Already have an account? Sign In Now
Discussions
(Paid Plans Only)
x