U.S. equity markets have been bouncing up and down on interest rate expectations, period. It’s all about the cheap monetary methadone, nothing else counts for the money junkies who gamble in the markets... that the mainstream media calls “investors.”
U.S. equity markets slipped Friday on news that the economy added 517,000 jobs in January, raising concerns that the U.S. Federal Reserve might keep interest rates higher longer.
As forecast, the Merger and Acquisition trend which we have been long reporting would peak when the Federal Reserve would aggressively raise interest rates and cut off the cheap money supply.
All economic eyes this week are on Davos, and according to The Wall Street Journal, the “Mood is Somber as Many CEOs Question Economy’s Future.”
What wonderful news for the billionaires who own The Street. Equities spiked last Friday on the wonderful news that the job numbers are weakening and wages for the plantation workers of Slavlandia are declining.
Once upon a time, we used indisputable facts and hard data as fundamentals to forecast the current events forming future trends.
Tomorrow is the day The Street has been waiting for. Following their two-day meeting, the U.S. Federal Reserve will announce Wednesday just how much they will raise interest rates.
Near the close of U.S. equity markets yesterday, CNBC wrote, “Stocks fell Monday on fears the Federal Reserve may continue tightening until it steers the economy into recession.”