Market Overview [35] - Investors are finally waking up
Dear investors,
Welcome back to the Market Overview, where we provide technical and sentimental analysis about financial markets. On top of that, we deliver crucial market information that can influence financial markets to be always a step ahead of major market movements.
The stock market had a rough week, the main indexes are swinging like small caps and underlying stocks are experiencing heavy losses, especially growth companies.
In this newsletter we will provide our perspective on the health of the stock market and its technical interrelationship with 2008.
News of the week
On Wednesday the Federal Reserve announced their next rate hike of 50 basispoints, lifting its main interest rate to 75 basispoints. The 50 basispoints is the biggest hike in two decades with the attempt to battle the multi-decade high inflation.
After the oncoming interest rate hike was announced and uncertainty was relieved, the stock market soared in the last trading hours. However those gains where vaporized the next trading day.
2008 vs 2022 - Comparison
After the dot.com bubble bursted the stock market found a bottom after three years of a bear market. After the bottom was made (Federal Reserve intervening) the market experienced five years of stabile growth and went back towards the dot.com highs. But when the all-time highs of the main indexes where within reach, greedy banks and corporations caused a red hot housing market to implode, crushing the stock market with it.
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