By Jeffrey P. Cohen
Investment Advisor Representative
US Advanced Computing Infrastructure Inc.
Update: 1430 ET today: The market fell hard today, and indiscriminately.
The market looked stronger this morning pre-market. However, it quickly headed lower.
The market fell after Federal Reserve Board (FRB) Chairman Powell gave a fire and brimstone speech. We listened to it live and in replay mode, and were assured that the FRB would maintain its fight against inflation (bringing it back to 2%) with a tenacious and relentless focus, regardless of the cost to our society.
This caused the financial markets to teeter on the brink. The US Dollar rose, interest rates (the long ones) rose, global stocks fell (except mainland China), and it looked like the bear market was in full bloom. High risk (high BETA) stocks fell dramatically.
However, today, the picture looks different. It seems like things are settling down.
We are worried about the size and amplitude (dramatic) financial markets movements based on a speech that was most likely a distraction meant to send the markets lower. It cost us a significant drawdown. We were uncomfortable for the weekend and Monday, but survived to trade another day.
Now, Copper and other precious metals are back in their range. The US Dollar has moderated and interest rates seem to have calmed down (but they are still elevated).
We made a video, and hope you like it. It is early pre-market, 0700 ET this morning.
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