Hello everyone. The big news today is Fed's plan to sell off the corporate bond portfolio it amassed in the midst of covid-19 crisis last year. The portfolio is worth of $13.8 billion.
Why stocks, commodities and forex reacted to the news? It's a signal that Fed is about to tighten the policy soon.
Who will benefit from Fed's tapering? The answer is US dollar.
Who will be hurt? Stocks, commodities, e.g. gold. I noticed that gold dropped by over $30 today.
In my opinion, that's the first step before eventually raise the interest rate. That's a warning sign for stock buyers. You'd better preparing for rebalancing your portfolio as soon as possible.
Why stocks, commodities and forex reacted to the news? It's a signal that Fed is about to tighten the policy soon.
Who will benefit from Fed's tapering? The answer is US dollar.
Who will be hurt? Stocks, commodities, e.g. gold. I noticed that gold dropped by over $30 today.
In my opinion, that's the first step before eventually raise the interest rate. That's a warning sign for stock buyers. You'd better preparing for rebalancing your portfolio as soon as possible.
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I've posted three symbol charts. It's important to check multiple markets that correlate with each other.
plan your trade and trade your plan