Entering into 2024, the trade playbook maybe distinguish from last year, the following contrarian notions may be helpful for you. China Tech--The entire Chinese stock markets were down 60% over the past two years, you can not find some people who tell you that Chinese stocks are investable. If you talk about big contrarian swing, this maybe the biggest contrarian swing that you can take.
The Federal Reserve in December gave the market a big dovish surprise, which held its key interest rate steady for the third straight time and set the table for multiple cuts to come in 2024 and beyond.The latest policy decision sent a strong signal to the market, that is the inflation rate is easing and the economy is holding in.
Federal Reserve Governor Christopher Waller recently acknowledged that interest rate cuts are likely this year, but the central bank can take its time relaxing monetary policy.
Higher interest rates, a potential recession and persistently high prices made consumers substantially less confident about the current state of the economy as well as where things are heading.There are factors, however, that have cast doubt on the Fed’s credibility.
What’s happening in resent weeks has been confusing the market. Fueled by the Fed’s pivot in policy, the markets climbed the wall of worry and set new highs; Then the Fed’s minute dampened the market enthusiasm, resulting in seven straight sessions sell-off. After several days digestion, the rally is back on its track. So where are the markets headed for after new highs? Will the Fed fall into a rut in terms of monetary policy? What are the consequences of that?
