Mohacsy's Safe Portfolio Member Forum

[10nisman]

This is an over reaction. Should make a good buying opportunity.

What's an over reaction? Inflation isn't coming down in any significant way and thus, the Fed will need to continue to raise rates and keep rates higher for longer in order to get inflation back to the Fed mandate. The only way to get inflation anywhere near the Fed mandate is to inflict significant pain on the labor market --- which means higher Fed funds rates. Powell said exactly this in his last couple of meetings.

Sadly, equity prices haven't priced in higher rates let alone the likely economic / earnings recession that will play out in 2023/2024 as a result of higher rates. I'd recommend listening to people that actually understand what is going on...