Why is the Stock Market So Damn Confusing?
The stock market makes very little sense sometimes. Wednesday was another prime example.
The Fed did EXACTLY what folks predicted...which was to do nothing and talk tough about raising rates soon. And this event...which EVERYONE knew was coming...sparked a +1.1% rally in the stock market.
Don't get me wrong. I'm not complaining as I enjoyed the profits that accrued in my portfolio. I'm just saying that the market should be more logical. In this case, that means the S&P should have not moved at all when the Fed did what was UNIVERSALLY expected.
There is no way the Fed touches rates in November just before the election. So now set your sights on a rate hike in December where odds have ratcheted up to 55% likelihood. Or to put it another way...it will be fun not thinking about the Fed for a couple months.
Best,
