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Fed’s Latest Move- Demise of ARKK and Innovation Stocks?
By Something About Finance  •  December 25, 2021
Contributed by: TheBigFatWhale With the latest move by the Fed, where they are looking to have 3 interest rate hikes in 2022 and into reducing their balance sheet, growth stocks have not been faring well. The move by Fed is a move towards a monetary tightening policy that will drain the exodus of liquidity that has been pumped into the economy since early 2020. Source: Tradingeconomics.com- Fed Balance Sheet The Fed Balance sheet has more than doubled since 2020 which is a worrying sign that things are going out of control. Therefore, the indication by Fed to reduce their balance sheet is a sound and prudent move provided they are really serious about doing it. We touch on our previous article about the 6 indicators to gauge if the S&P 500 is peaking with the Fed Balance sheet as one of our concerns. With a potential stoppage of easy money, the prospects for growth stocks could be...
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By Something About Finance
Welcome to My Blog. Hoping to share and learn from others on finance related topics. Let's embark on the journey towards financial freedom. Currently, I am an appointed representative (Equities and Futures Broker) with an established brokerage firm in Singapore. I deal mainly with Equities, Futures and Forex.
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