Market strategist warns of Blood on February 1st before the Fed meeting-Economics
Market strategist warns of Blood on February 1st before the Fed meeting-Economics
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stocks, precious metals and cryptocurrencies recovered in the first month of the year, and market strategists say that the markets could decrease in the near future if the US Federal Reserve further increases interest rates and maintains a broader tightening policy. In three days, on February 1, 2023, the Federal Open Market Committee (FOMC) will meet. While the market expects interest reductions, some analysts assume that the Fed will continue to raise the Federal Funds Rate. Chris Vermeulen, the founder and Chief Investment Officer from The Technical Traders, insists that the S&P 500 will fall under its current position by 37 %.
Stratege predicts a possible market correction, since Powell's re -tightening of the financial conditions is expected
The markets attentively observe the next meeting of the Federal Open Market Committee (FOMC), which is to take place on Wednesday, February 1st in three days. Last week, bitcoin.com news 16. Chairman of the Federal Reserve. While the FOMC meeting is getting closer, discussions about the result on social media are widespread.
A market strategist, known as "The Carter" On January 27, "blood will flow on February 1st", which refers to the turbulence that the markets could be exposed to after Powell turned to the nation. While some investors expect a reserved FED and possible interest reductions, Carter argues that Powell will continue to tighten and implement a restrictive policy.
The strategist expects the Fed chairman to address this topic on February 1st and to shift the conversation on how long the Fed has to hold the final interest rate and why. "Look for him to expand the teachings of the 1970s", Carter wrote . "Why the Powell market continues to put on the face and does not expect a counter -strike are mysterious. This is the craziest market constellation here and now. On February 1st blood will flow."
expert predicts a decline in the S&P 500 by 37 %, while gold and silver are shining in a declining market
In conversation with David Lin, moderator and producer at Kitco News, Chris Vermeulen founder and chief investment officer by The Technical Traders, said that shares are due for correction.
"I honestly think that the S&P 500 could fall by further potential 37 percent compared to the current level," Vermeulen told Lin. "This is enough to cause a lot of damage, a lot of stress, many bankruptcies, whatever," he added. In contrast, Vermeulen expects gold and silver to shine during the declining market. "This is the time when precious metals and miners take off," emphasized Vermeulen, while talking about market cycles.
Vermeulen is not the only investor who believes that gold and silver will take off. In December 2022, the AUAG ESG Gold Mining ETF, Eric Strand, said that Gold will reach a new all -time high in 2023 and will switch central banks to interest rate increases.
"In our opinion, the central banks will change their interest rate increases and become reserved in the course of 2023, which will trigger an explosive movement for gold in the coming years," said Strand said . "We therefore believe that gold will end the year 2023 at least 20 % higher, and we also see that Miner will surpass gold by a factor of two."
While gold is on the advance and the expectations for 2023 are high, Harry Dent, the founder of HS Dent Investment Management, has a Contrary to the performance of gold this year. Dent predicts that the yellow precious metal could lose $ 900 to $ 1,000 in the next 18 months.
What do you think about the possible market correction? Do you agree to the forecasts of the analysts or do you see it differently? Share your thoughts in the comment area below.
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