Monday 20 February 2023

Federal Reserve To Increase Rates Again To Combat Inflation- Will Stock Markets Crash Again?


Now this is bad, US job data are better than expected (Non-farm payrolls increased by 517,000 for January, notably above the 187,000 additions estimated by Dow Jones) and US wage growth are at 4.4% which is higher than the inflation target of 2%. Other US economic data are also on the rise. Will the Feds reverse their recent down shift in rates increase back to giant size of 0.5% or 0.75%? The elephant in the room would be will the Singapore Stock Exchange market crash again after the recent recovery in view of higher and uncertain terminal rate? 

For Q1 of 2023, I have S$18.8K of dividends due for payment from my investment portfolios being announced by the investee companies. Currently pending for 22 Feb 2023 results announcement on the distribution that will be released by United Hampshire US REIT- this is my last major investment that has not announced its distribution. Hopefully can get up to additional S$4.2K distribution to bring it up to S$23K for re-investment in March 2023.

2 comments:

  1. I personally believe that the Fed will revert back to 50 bps rate hike, and may become excessively aggressive for the forseeable future. I think Jerome Powell, who revers Volcker, will realise that it was a mistake to reduce rate hikes so early and overcompensate to rectify his error. I will be bracing for an economic recession...

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    Replies
    1. Haiz,..maybe a deep economic recession is the only way out for an end to the inflation problem.

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