Whatever it takes to get catalysts moving a stock. Had a few PMs with some other reopening traders about this over the last couple weeks. I called exactly this. Media sensationalism will drive the stock prices lower on all of these names. Most people are emotional traders. It's all a part of seeing the bigger picture.
Bullard is always the hawk, they are going to be taking action more dovish than his position. He wants hikes next year, each meeting we will have to watch to see if he starts converting people to his side.
It's the politicing that has me wondering if any hands will be forced. Biden and other senators openly criticizing Fed policy and it is getting louder. Whether that is right or wrong is another topic altogether, but people are getting fed up with the current situation.
Without getting into the political side of it the pressure from the WH is to stay dovish despite the fact hawkishness would fix the inflation. Politicians won't switch to wanting higher rates until things hit a real crescendo with inflation that they can no longer ignore it. MMT policy wogs are going to fight back against any talk of tightening. It really is going to be interesting over the next year to see how inflation behaves and how the Fed tries to act in control while doing the least amount it feels it can get away with.
We are up over 20% the S&P has rarely been down after being up 20% the previous year and normally it's quite a good year. I'll see if I can find the stats on it.
I think there also needs to be the context of the various types of investors/traders. For someone who is long equities for the next 20 years or so, what happens in the next 6-12 months is sort of irrelevant. For traders, however, a period of extreme chop or an extended downturn can have a significant impact.
