The Federal Reserveâs Open Market Committee isnât going to admit it made a mistake in December by raising interest rates. But the statement it released yesterday â announcing no change to the Fed Funds rate â certainly had an air of contrition. The statement used the word âgradualâ twice.
Like a chastened lover trying to make up after an argument, it tried to assure investors that, even though it raised interest rates last year, it will only do again gradually. And that rates are going to stay low for a long time. I promise baby. Really.
The market doesnât believe you, Fed
The S&P 500 fell by one per cent. But it was the tech stocks and the Nasdaq that felt especially scorned. The Nasdaq fell 2.18%. Facebook and Amazon fell by about 3%Â each.
What is the âmomentum effectâ? What is the âmomentum crashâ? When does it happen and what should you do?
These are all subjects Charlie Morris addressed in his first effort as Investment Director of the Fleet Street Letter. To be honest, Charlieâs been raring to go for months. Heâs sending out his first weekly update tomorrow. I wonât give it away until subscribers read it. But Charlie reckons some of the signals for an oil price turnaround are⌠signalling. His first update tells new readers what to do.
Category: Central Banks