Stock Market is Bleeding
As I wrote yesterday, CPI is Coming to Show the New Inflation Level, Today the May 2022 CPI data is 8.6% Year to Year, which surpasses the estimation of 8.3%!!! After March, again, the inflation hits the 40 years peak!
Therefore, next week, the Fed Reserve meeting will for sure increase the interest rate by another 0.5%, and will do the same thing in July and September at least.
In this situation, it is really hard to predict the bottom of the market. If we cannot see any improvement after these rates hike, we need to expect a more aggressive rate increase, such as 0.75% every time. Let’s wait for the Fed Reserve meeting next Tuesday and Wednesday.
Mark the Date!!