Are you tired of the Federal Reserve yet?
For the past year, it seems all the stock market has cared about is the Fed and its board chair, Jerome Powell. Stocks soar when the Fed sounds dovish about future rate hikes, and they crash when it sounds hawkish.
Forget a recession, inflation, or geopolitics. The past two years on Wall Street can be boiled down to just that: When the Fed’s happy, stocks go up, and when it’s not, stocks go down.
And yesterday, the Fed wasn’t too happy.
An Unhappy Federal Reserve
The central bank said that the economy was trending stronger than it expected and that inflation was proving stickier than expected, too. As a result, Powell and company said that the Fed likely isn’t done hiking interest rates and that rates will stay super-high for the next year or so.
Wall Street wasn’t ready for that. Investors were looking for the Fed to call it quits yesterday and signal that four rate cuts were coming in 2024. Instead, the Federal Reserve didn’t throw in the towel and said only two cuts are coming next year.
And guess what happened next?
Well, stocks – which were having a pretty good day until Powell took the stage – crashed in the final two hours of trading. And the crash looks set to continue today.
Now, in all seriousness, it’s not Powell’s or any of the Fed board members’ fault. We operate in a debt-driven economy. And as it turns out, when you build an economy on debt, interest rates matter more than anything else.
The Final Word
The Federal Reserve is just playing the hand it’s been dealt.
But aren’t you sick of Powell causing your stocks to soar one month, then crash the next?
We certainly are.
That’s part of the reason why we built our new Prometheus AI system.
Prometheus is an AI-powered trading system that leverages more than 50 technical and fundamental factors to identify when a stock is about to surge higher in price.
And it does so regardless of what the Fed is doing.
The Fed can hike rates or cut them. It can sound happy, sad, or indifferent. It doesn’t matter. Every week – regardless of what is happening in the economy or the market, at the Fed or in the White House – Prometheus scans the entire stock market.
And it uses that up-to-date data to rate every stock on its own, unique potential to soar in price over the next month.
It finds stock market winners, even in stock market chaos.
If you’re sick of feeling like your portfolios are entirely dependent on the words of a single man named Jerome Powell…
And if you’re exhausted from the emotional rollercoaster this market has put investors through ever since COVID struck in 2020…
Then you need to try Prometheus AI.
It’ll help turn your portfolio’s volatility into profits.
And luckily – for a limited time only – you can test-drive Prometheus AI for yourself.
Start using AI to beat the market – and never think about the Fed again.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.