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Everybody loves a good rally, and this week gave us one, with the Dow blasting up almost 1200 points by the time markets closed on Thursday. The CPI print came in lower than expected, at 7.7%, so naturally we saw a rush of call option buying from market-maker dealers and retail traders, pushing markets skyward. Things could keep popping up higher if a wave of FOMO buying follows next week, or if we get a Santa Claus rally this holiday season.
But the long-term outlook is much less certain. Whether the Fed begins to ease the pace of its rate hikes or not, they've made one thing clear - they're not budging from their 2% inflation target. That means we're still going to see higher interest rates for longer, and that creates significant resistance to moving out of the overall bear market we've seen all year.
On yesterday's episode of Shah Gilani Live, I broke down everything you need to know about what's happening right now and how to play it. In case you missed it, you can watch it by clicking the image below:
I've got my eye on the dollar collapse and potential contagion fallout from the FTX debacle, and as always, I'll keep you posted on any opportunities I see. Keep an eye on your inboxes.
Have a great weekend,
The post Tapering Inflation Rallied the Markets - Here's What to Do Now appeared first on Total Wealth.
About the Author
Shah Gilani boasts a financial pedigree unlike any other. He ran his first hedge fund in 1982 from his seat on the floor of the Chicago Board of Options Exchange. When options on the Standard & Poor's 100 began trading on March 11, 1983, Shah worked in "the pit" as a market maker.
The work he did laid the foundation for what would later become the VIX - to this day one of the most widely used indicators worldwide. After leaving Chicago to run the futures and options division of the British banking giant Lloyd's TSB, Shah moved up to Roosevelt & Cross Inc., an old-line New York boutique firm. There he originated and ran a packaged fixed-income trading desk, and established that company's "listed" and OTC trading desks.
Shah founded a second hedge fund in 1999, which he ran until 2003.
Shah's vast network of contacts includes the biggest players on Wall Street and in international finance. These contacts give him the real story - when others only get what the investment banks want them to see.
Today, as editor of Hyperdrive Portfolio, Shah presents his legion of subscribers with massive profit opportunities that result from paradigm shifts in the way we work, play, and live.
Shah is a frequent guest on CNBC, Forbes, and MarketWatch, and you can catch him every week on Fox Business's Varney & Co.