Traders planning to buy bitcoin on the first hint of the so-called Fed pivot may want to consider the tendency of stocks to drop more after the central bank kicks off the easing cycle. By godbole17
That's the message from the S&P 500's historical data, which shows Wall Street's equity index, a benchmark for risk assets worldwide, bottoms out several months after the Fed kicks off the easing cycle with an interest rate cut.
Bitcoin tends to move more or less with the sentiment on Wall Street. The Fed has raised rates by 300 basis points this year, wrecking havoc for risk assets.The U.S. saw six economic recessions between 1969 and 2007. In each case, stocks extended losses, falling by an average of 28%, after the Fed cut rates to stimulate the economy, according to data tweeted by Nick Gerli, CEO and founder of Reventure Consulting.
"Just like Fed rate hikes take time to pile up and inflict economic damage, a pivot to easing will take time to filter through, too," Thomas added.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Sanders criticizes Fed, touts Dems as “preferable' candidates for working classSen. Sanders says Dems are more 'preferable' candidates for working class voters in the upcoming midterms. “[A]t a time when half our people are living paycheck to paycheck, we should raise the minimum wage to a living wage. No Republicans support that.”
Leer más »
White House’s Rouse says Fed inflation push starting to work(Bloomberg) — The Federal Reserve’s interest-rate hikes to bring inflation under control are starting to work, while President Joe Biden is doing everything possible to support the US c…
Leer más »
How can the Fed tame inflation as prices rise faster than expected?The cost of living in America is still on the rise and the Fed is expected to raise interest rates again amid growing concerns of a recession. NBC’s Stephanie Ruhle reports in this week’s Sunday Focus.
Leer más »
Fed rate hikes are 'hurting the situation,' Sen. Bernie Sanders saysThe Federal Reserve’s policy of steep interest-rate hikes is not helping the struggling economy and is instead hurting working Americans, Sen. Bernie Sanders said Sunday.
Leer más »
GBP/USD faces barricades around 1.1250 as hawkish Fed bets soarThe GBP/USD pair has picked offers in the Tokyo session firmly as the risk-on mood has started fading. The kick-start of the US quarterly earnings sea
Leer más »