Reason? It is all noise. Ignore it and all the squiggles. Step back, look at the big picture.So, the Fed decreased interest rates by 0.5% to 4.75-5%.
Someone not experienced would assume that this would lead to a decrease in money market funds yields, treasury yields, and bond fund yields. So, investing in fixed-income assets will provide less return and people may be more inclined to buy stocks.
However, all major equities (total US market, S&P 500, Nasdaq 100, total international, US small-cap value) went down after the meeting.
What is the reason for this downward move when you would expect people to buy more stocks in this situation? I would love to hear your thoughts as a similar situation will likely happen again sometime. I understand that it is only 2 hour (LOL) trend and may completely revert tomorrow etc but it is still interesting.
Other than that, picture being in charge of mega money. How would you position yourself? Would you react right away? I'd say that the smart money takes their time, sifts through things, maybe already front ran the markets. Now, have to consider moves and work them out. Perhaps have to have some committee meetings, take things further. So the blips up and down might all be the short term traders feeding off themselves and the bots. Or maybe you have just a family office with 10M. Did you get to that point being brash and reactive such that minutes after the decision you are moving money around?
Not actionable...
Statistics: Posted by 4nursebee — Thu Sep 19, 2024 3:29 am — Replies 62 — Views 5353