possible 'turning point' after next week's Fed decision ...
(snip)"there have been 12 periods in the last 53 years where the Fed has engaged in a series of rate hikes. In 10 of those instances the S&P 500 subsequently declined AFTER the final rate increase, with an average drop of 22% to the eventual bottom. On average the market bottom occurred 10 months after the end of tightening. Importantly, an economic recession followed in 9 of the last 12 cases. On average the economy did not peak until 4 months after the last rate increase, although in two instances the peak actually occurred first, meaning that the last tightening was implemented after the recession started, but before the Fed was even aware of it."(snip)
The point in question is of course whether the Fed will hold the same interest rate after next week's meeting (which the world futures markets say is highly probable). The 'tin foil hat' crowd seems to be of the opinion that this will be the case, as will the 4 month delayed 'peak' in the economy ... which would coincide exactly with Election Day in November versus the last Fed rate hike having taken place in July.
Past history would tend to indicate that a sizeable drop in the stock markets would also be imminent. I'm not recommending this to anybody else, but I'm going to invest some 'gambling money' in QLD .
Re: possible 'turning point' after next week's Fed decision ...
For the little time that I have been here you have hit the nail on the head quite often. Thanx as always for the posts, they are appreciated!!