Frankly, I don’t care what the Fed does.
To me, today’s rate hike or cut won’t matter in the next 3 decades of investing journey.
If fed hikes rates further, the stocks are likely to tumble; giving me an opportunity to buy more at lower valuations.
If fed cuts rates down or holds back, the stocks are likely to shoot up along with the risk assets like Bitcoin. Well… I’ve loaded both equities & cryptos recently in decent quantities & this rise will make me tremendous money.
Both ways, rate hike or cut, I win! Hahhhhaaa
Bring it on.
Anyway, for day to day traders, here’s the general playbook which is likely to play out tomorrow.
If fed hikes by 50 bps: The US banks would be under (further) pressure leading to a sharp fall equities.
If fed hikes by 25 bps (most likely): The market seems to have priced this in & we may see some positive bias despite hike.
If fed holds on: The markets would rejoice.
If fed cuts by 25/50 bps (less likely): The markets will rejoice crazily & lead to a risk on rally. Stocks & cryptos rise to the moon & this will be the beginning of the fresh rate cuts.
On a side note, I’ve loaded some calls options for tomorrow’s expiry where my risk rewards are 1:50. Even if it goes to zero, it won’t bulge me or my portfolio.
In the long run, I know we’re the winners whatever today’s FOMC meeting’s outcomes be.
To minting money!
