⬆️ The Fed raised the rate by 0.25% to 5.25%
The Fed will continue to further reduce the balance sheet under the plan. (This should have a negative impact on the markets).
The Fed has removed the signal about the need for further rate hikes, but does not give clear hints of a pause. He also notes that today no decision was made to pause. But, nevertheless, it hints that it is possible that the cycle of increase is already over.
FED is sending a signal that it is not going to lower the rate yet, it wants to keep it at a high level for some time.
FED again does not want to talk too much about the recession.
FED says banks are strong and the US economy will not let you down 🤡
Powell says it's important to raise the debt ceiling, but not just raise it, raise it on time.
Comment from our team:
At the moment, the rate was raised to levels of 2007, which was later, you all know very well… Now there is a whole combination of factors for the market to fall.
However, there is enough liquidity in the market that has been created over the period from 20-21, so the markets cannot collapse, as a huge amount of money buys out drawdowns, since inflation, although it has slowed down, continues to grow from month to month.
📉 We are negatively looking at Sp500 in the medium term.
The decline in revenue and profits of companies due to the recession will have a negative impact on EPS. Buybacks, which have been a major driver of stock growth in recent years, could be hit by rising taxes.
❓ For Bitcoin, the situation is very uncertain.
In history, $BTC has not yet gone through a recession. But we believe that eventually bank failures will lead to a large flow of funds from private investors to Bitcoin, which will lead to its growth. But sharp drawdowns cannot be ruled out.
📈 Looking positively at gold.
It is currently trading at 3-year highs. The level of $2000 has already acted as resistance three times, but today we see how gold has broken through this mark. In the near future we can see a sharp increase in this asset. Any drawdown in gold is recommended to be aggressively buy $PAXG.
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