Delusional bulls??

What a day yesterday 😂😂
To be honest its become the norm… pump into FOMC by delusional bulls thinking we’re getting a softer fed and an even softer landing. Yesterday Jerome Powell CRUSHED those hopes and dreams.
Simply put the fed signalled they are going higher for longer than the market anticipated so hence the downside move.
The fed are saying they want to see rates above 5% for the entirety of 2023 and around 4% in 2024… They also said they will stick to the 2% inflation goal no matter what happens.
So we have our confirmation guys… the US WILL 100% be pushed into a harsh recession unless something drastically changes. Reality is I think we are already in the recession and have been for weeks now but I expect to see conditions to tighten further… More pain.
Personally I actually don’t believe they will be able to keep rates at 5% for 2023. Something will break before the end of 2023 and they will be forced to pivot but we have to take this week by week and keep an eye on the data.
My main reasoning for this is Jobs… I think we will start to see the job market faulter beyond the BLS is able to cover it up any further and political pressure with eventually force them to move.
But make no mistake, I’m not one of the deluded bulls… I want to see more pain, more evidence in the data before we even start thinking about the fed bending.
So tomorrow we have a multi trillion Opex… I’ll do more digging into what I expect from this event today with the view of posting something in the morning.

And remember bear markets makes millioners 😂

Posted Using LeoFinance ^Beta