Three major U.S. indexes plunged again on Thursday as investors got tripped by a hawkish Federal Reserve’s fight against inflation amid fears of a hard-landing.
The Federal Reserve on Wednesday hiked the benchmark interest rate by 50 basis points. Fed chair Jerome Powell said the central bank was not likely to hike its benchmark interest rate by 75 basis points at its next meeting, all but promising consecutive 50 basis rate hikes. Almost 44% of people say the market is moving in a bearish direction, according to a recent sentiment gauge from the American Association of Individual Investors. That’s almost 14 percentage points above the 30.5% historical average on bearish sentiment in the ongoing tracker.
In the same poll, roughly four in 10 investors said they felt more confident in their ability to protect their finances in any upcoming downturn and 38% said they felt confident in their ability to invest in the stock market. Besides, there’s the long-term story to remember. Think big and think about the long game on investing during downturns and bouts of volatility, said Scott Bishop, executive director of wealth solutions at Avidian Wealth Solutions, based in Houston, Texas.
Gold shines.😂👌
When Biden screws things up, he really goes all the way.