Has The Fed Minutes Release Killed The Global Market Rally?

The Feds released the minutes of their December meeting 2 days ago. It was more hawkish than expected, with ultra-easy conditions slated to end faster. Markets have reacted negatively to it, but are still very close to all-time highs.

This is going to be a long-term drag on market sentiment. The balance of market forces have changed. With policy now acting against the market, coupled with sky-high valuations, the probability that the red-hot market rally will end is now high than ever.

In my humble opinion, it is best to minimize exposure to stocks which have run up a lot, and also stocks with high gearing ratios. If you have high conviction that a stock will fall, you can also consider shorting it.

Author: novaliser

I have been trading since 2012, and retired from the corporate world in Dec 2021 after accumulating enough profits to feel comfortable living without a stable monthly income.

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