Bottom line: I think the market is headed for a lot of pain.
We got the 25 basis point hike I was expecting. But we also got something along with it that has given markets pause, which is a direct statement from Jerome Powell that the Federal Reserve is not considering a pause or any cuts at this time. The door is open for even more hikes, which is pretty much exactly the opposite of what institutional investors wanted to hear.
Well, naturally, markets fell yesterday on that news. Today, major indices are struggling and continuing to lag intraday.
If we're going to see a big move in either direction, it'll come on the heels of Apple Inc (AAPL) reporting earnings this afternoon. If the numbers and forward guidance look bad and the stock takes a hit going into tomorrow morning's trading, we're in for a real rough ride.
But even if the news is good and we get a quick pop, the reality check is coming. It's just a matter of time. Higher rates for longer means that the problems we've seen in the banking sector are going to compound, which means that as cheap as a lot of those stocks looks now, it's still not time to get in. They could go a lot lower and drag markets down with them.
More broadly, everyone that's been trying to front-run the Fed and catch a rally on a rate reversal is eventually going to realize that there's no point, because we're a year out from anything like that unless some extreme crisis happens. And they'll react accordingly. So that lovely run up we've seen in big-cap tech? Yeah, kiss it goodbye. It's probably done.
That said, anyone who's been following me for a long time knows that I'm not scared. If you're careful and nimble, you can make money in any market, and there are tons of opportunities out there.
Today on my live show, instead of going over specific stocks to buy or sell, I wanted to give you a core strategy to not just survive, but thrive, as we head into these rough waters.
Check out this video for everything you need to know:
I'll say it again - there are a ton of opportunities right now to make money even when things are going sideways, and even when things are crashing. I have a strategy designed to capitalize on stocks that are getting hammered by market shifts like what we're seeing now, playing them over and over again to maximize our potential gains.
You definitely want to be with us when this reality check I've been talking about finally hits. Go here for all the details.
The post Your Post-Fed Survival Guide - Everything You Need to Know 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.