As the US fed pushes rates higher, more and more consumers will be pushed to their financial limit that will drive some level of economic contraction. It is almost like the US fed has no understanding of supply and demand functions as related to their policies. As they push the rates higher trying to front-run inflationary concerns, they don’t understand that many borrowers can’t sustain raising rates at this pace. In the process, many borrowers will be pushed into foreclosure and possibly bankruptcy as the fed attempts to normalize rate levels.
As traders, our job is to find the opportunity that exists and to try to capitalize on price movements and from swings in valuations that occur throughout this game. The US fed and global central banks will do what they do – we really don’t have any control over them or their decisions. As traders, our job is to be ahead of these central banks and take advantage of the opportunities they provide to us.
We likely still have many months of preparation to further understand and develop our strategies for these future moves. We invite you to visit www.TheTechnicalTraders.com to learn what we do and why we believe we offer the best research and analysis available to traders"
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