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Happy Monday, mooers! Welcome back to Weekly Buzz, where we review the news, performance, and community sentiment of the selected buzzing stocks on moomoo platform based on search and message volumes of last week! (Nano caps are excluded.)
Dadacai : Equity prices will go down in response to an interest rate hike. Bond prices will also drop. There will be people selling to protect their capital and profits while others will be looking to buy the dip. One has to weigh the risks and rewards for each type of holdings. Those doing DCA into high quality companies for the long term don’t need to worry about timing the market.
HopeAlways :
mcstiner : both. buy smart. do extra diligence.
exit reckless and speculative positions.
buy the dip on companies with strong long term prospects. buy the dip on companies with dividends that would reimburse you within the next 10 years.
HopeAlways : Higher interest rates can have a negative impact on the stock market. When the Fed rate hikes make borrowing money more expensive, the cost of doing business increases for companies. Over time, higher costs and less business could mean lower revenues and earnings for companies, potentially impacting their growth rate and their stock values. Nevertheless, investors should not panic nor act impulsively. Instead, it is wise to take advantage of any market volatility by investing in quality stocks when the market takes a hit.
Syuee : When the Fed boosts its short-term rate, it tends to make borrowing more expensive for consumers and businesses, slowing the economy with the intent of reducing inflation.
Terrified by the prospect of higher rates, ordinary investors have been dumping stocks in fear of the uncertainty ahead. Past weeks, a sell-off sent the $S&P 500 Index (.SPX.US)$ into its worst weekly loss, since the pandemic erupted in March 2020. The tech-heavy $Nasdaq Composite Index (.IXIC.US)$ has tumbled more than 10 percent from its peak, amounting to an almost full-blown correction.
If interest rates rise, ordinary investors may also see more value in bonds, certificates of deposit and deemed them to be lower risks than stocks.
Corrections, while scary, aren’t all bad. Those market dips can be buying opportunities for the greatest and finest quality stocks.
KT88 Syuee : Well-explained. Thank you for sharing. I agree, that there is no need to panic. Fed rate hikes can impact our financial decisions, but they are not reasons for us to act impulsively.
KT88 Syuee : As commented, when rates rise, bonds will look much more attractive, likely encouraging investors to shift money out of riskier areas of the market. The unknowns can be daunting. But, it usually makes more sense to wait out turbulence, than to try to pick a good time to panic sell.
KT88 Syuee :
Jeet Kune Do HopeAlways : Good analysis and advise.
Syuee HopeAlways : It is important for investors to resist the urge to get out of stocks now because they may miss any upside later on. Longer term investors should stick to their long-term goals and stay on the course during choppy market activity.
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