As I have indicated in my last market’s assessment on February 9th 2018 “ For the moment the markets are healthy and the American economy is doing well but he steepest drops are yet to come. “ I don’t think that the market has seen yet its lows for now on the 9th of February 2018 for the twice 1000.00 points drops in early February, how about 2000.00 points sell offs or higher, this will not have investors to smile about the market’s volatility.
From now on I am concerned about the 3rd and 4th quarter rate hikes and the overall market highs this will send the market to volatility, I am reassessing and selling my portfolio, I feel that my stock picks have done incredibly well since April 17th 2015, I will be buying and shorting selected equities and to keep some cash for some future buying opportunities when the market’s insanity will take place.
The fear is that the inflation rise will force the Federal Reserve Chairman Jerome Powell to raise the interest rates to cool the economy off as Consumer confidence hit a new 17-year high in February by ending the nice ride for both the Dow and the S&P have seen 10-month winning streaks, while the Nasdaq had gained for seven straight months, the S&P 500 had reach a 15-month streak of gains, the longest such stretch in its history of this bull market in stocks that has seen its rise since March 2009.
As long as the Fed will not raise the rates to an aggressive level that will cause a recession the market will do fine but I don’t see this from happening this way because over all we are due for a market correction and according to me it looks like the market is running out of steam and the indication from the Federal Reserve to turn more hawkish and increase corporate borrowing costs to possibly raise interest rates four times in 2018 and keep in mind that the U.S. economy will remain the world’s strongest.
March 08 2018