Take a look at the probability of the Federal Funds Rate pause.. 😲

in H4LAB Research2 years ago (edited)

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Source: CME FedWatchTool

Damn.. unbelievable 😲 98% market participants anticipated the FED will pause the Federal Funds Rate. It seems that they are convinced of it. I've never seen this data before. Interesting 🤯

The average period of the interest rate pause is around 5 months. Then, the Fed could start the interest rate cut March next year.

The interest rate cut doesn't necessarily mean following a recession. So, there might be a recession or not next year. If there's a recession next year, it doesn't necessarily mean a bearish market.

What I can do is.. I'm not leaving the market I'm also worried about a market collapse. So, I sold some of mine, and I am holding cash and will prepare a next bearish or correction or consolidation market.

It looks like the time of risky assets such as stocks, cryptocurrencies and real estates is coming.

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What I learned from your post: 98% expect Fed to pause Federal Funds Rate, potentially starting in March. Recession may not necessarily lead to bearish market, with high demand for risky assets.

Wow, I'm impressed