FOMC meeting results will likely be: Tapering very likely to...
FOMC meeting results will likely be:
Tapering very likely to be discussed and dismissed. UST market unlikely to see major moves. Soft recent data discourages a hawkish signal(inflation increase)until the FOMC has more clarity on growth and inflation. Expect Chair Powell to stress that all participants see tapering action as very premature. The 2021 forecast of core inflation is likely to rise. Rates on reverse repos (RRP) or overnight reserves (IOER) wont be raised at this meeting. Chair Powell will likely push back against the view that the rebound has come off the rails but not spook the market by completely ignoring data softness.
Tapering very likely to be discussed and dismissed. UST market unlikely to see major moves. Soft recent data discourages a hawkish signal(inflation increase)until the FOMC has more clarity on growth and inflation. Expect Chair Powell to stress that all participants see tapering action as very premature. The 2021 forecast of core inflation is likely to rise. Rates on reverse repos (RRP) or overnight reserves (IOER) wont be raised at this meeting. Chair Powell will likely push back against the view that the rebound has come off the rails but not spook the market by completely ignoring data softness.
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Daniel Zn : If that indeed happens, what strategy do you recommend for the average investor? I’m pursuing a 60% portfolio position in semiconductors and rails, 20% in o&g, and 20% in growth tech stocks like $$UP Fintech (TIGR.US)$.
A good idea?
Mcsnacks H Tupack OP Daniel Zn : I would go with FDA PDUFA dates right now as choppy as the market is. Like $$Amicus Therapeutics (FOLD.US)$ $$ChemoCentryx Inc (CCXI.US)$. They are guaranteed money makers. Just have to wait until their PUDFA dates. Which are about a month away. Tech worries me until the market settles down more.
Jamesxfj : Tupack do you think it’s a good idea to short $$UP Fintech (TIGR.US)$ . The stock looks like it’s free falling.
Mcsnacks H Tupack OP Jamesxfj : Should fall to about 15.59