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Read/Watch Time: 34 minutes
Whew. Isn’t it nice that we only have 7.7% annualized inflation?
This must certainly mean that the Federal Reserve will soon “Pivot” right?
When the Fed is Hawkish they are trying to slow down an economy that’s running too hot. They are now Hawkish.
When they are Dovish they are trying to stimulate a sluggish economy.
A Pivot is when they go from one to the other.
The Labor market is strong. Wages are strong. Prices are still stubbornly high. Stocks going up 6% in a day. This is NOT a formula for Dovish.
Less Hawkish would mean that the Fed may hike interest rates only 0.50% in December (instead of the previous hikes of 0.75%). This is NOT stimulative.
There is a point in Inflationary Bear Markets when things start to break. Yesterday’s crypto mushroom cloud of FTX is just one of them. BTW… lots of pension funds had invested in FTX.
Please feel free to teach this to your family and friends. We appreciate the referrals.
Here’s the video link: https://squiggletrader.com/wp-content/uploads/2022/11/Mid-Week-Update-Pivot-11102022.mp4
Cheers!
Bo – Chief Squiggler
Help Yourself. Help Others.
Disclaimer
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