Today is a meaningful day, a day whereby rate hike triggers market rallies! (which is quite abnormal)
Based on the market reaction today, it seems that investors had already digested and are expecting rate hike is a good news for the market. This really puzzled me!! US Fed is raising interest rate but the US Treasury note yield falls from 2.63% (March 14) to currently 2.49%. USD falls; Gold price rallies; Seems that the market is overjoyed?!?! To be frank, I am pretty confused. The logic doesn’t seem to be making sense.
However, I think it is really ok to let everyone cheer and let the market fly as the market has been so boring for so many years. The market need some excuses to cheer and party. Again as a value and growth investor, I opine these are just short term speculation that may not really reflect the logic of the market reaction. Don’t get distracted, focus on the fundamental, and continue to search for the gems.
If you know me personally, you would have heard from me – stay invested as we just could not pre-empt how market would react nor hoping for crisis tomorrow to bargain hunt. Today is a very good showcase.
