VTI - The Fed Is Likely Bluffing And The Market Knows It
2024-02-12 13:43:38 ET
Summary
- The Fed's monetary policy was the reason for the rise and subsequent crash of top tech stocks in recent years.
- Despite recent run-ups, high-quality stocks are supported by earnings, sales growth, and profitability potential.
- The Fed is likely to cut rates soon, creating a more accessible monetary environment and propelling stocks higher.
I often hear that the Fed could enable the next market selloff or trigger another bear market due to its hawkish monetary stance and the "higher for longer" interest rate regime. In reality, though, we already went through the bearish increasing interest rate cycle, which led to one of the most significant bear markets in technology and other segments we've seen in decades....
The Fed Is Likely Bluffing, And The Market Knows It