Is the stock market going to tank after next week's FMOC?

Question

Everyone expects another rate hike. Plus a lot of expectations that rate increases don't end in June. Soros says there's lack of liquidity in the world markets. Summer months are historically weak. Is this formula for stock market fallout on the 1st week of July? I just want to make sure I'm on the right side when all of this happens.

Answer 1

If the rate goes towards 5.25%, then there's definitely more money to be made in savings on saving at 5.25% (and higher CD rate), since some stocks haven't delivered those returns over the past year.

Expect the loser stocks to drop further, as people are cashing out of stocks growing 1-5% a year, and that will perhaps take the entire stock market down with it.

Answer 2

Many observers think the stock market has already "priced in" the expected rate hike, and there will be only a small dip if any. But they could be wrong; nobody can predict the stock market. The Fed might raise rates more than expected, for example.

Don't try to time the market. Buy and hold long term investments.

Answer 3

So much certainty in these questions; must be a lot of filthy rich people out there behind keyboards. The markets weeds out people who are unable to be honest with themselves.

And your question implies that someone has "the answer."

Accept that investing is uncertain because the future can never be known. This premise will set you in a different direction than hope, fear, and crystal balls. Success in trading will be enhanced if you abandon all efforts at prediction and focus instead on knowing what to do when and if certain prices occur in the market.

This premise will show you that your primary concern is measuring and managing risk, measuring your odds, and stepping aside when you can't put the odds in your favor. Sometimes doing nothing is better than doing something.

The great thing is, there will always be another opportunity.

To answer your question, over the last 20 yrs and three different Fed's, I've learned to stand aside. But then, I'm leveraged. To each his own.

Answer 4

No, it won't tank.

The market has already assumed a rate increase on Jun 28/29. I think most are assuming an August increase as well at this point.

Answer 5

It might. But long term, the US market is very promising. US companies are posting record profits. Unemployment is low and interest rates, in historical terms, are very attractive.

Answer 6

that is kinda like this... once you get my age, you've realized to save money on the sidelines. If it crashes, i bypass procuring. finally some thing else will be tempted through the increasing expenditures from the bottom. staying power... You adult males can lose all you pick including your short time period and thoughts trading...

Answer 7

Do not build your life around it.