Today, I will mainly analyze two things:
First, it is mainly an analysis of the reasons for the recent continuous market adjustments:
First, after the Federal Reserve recently announced the details of the downsizing, the market has fallen into an extremely turbulent situation. In recent trading days, ten-year treasury bond yields have ushered in a rapid upward wave, once rising to a high of 2.83%
Fast-rising remote interest rates are clearly suppressing growth stocks, and as the Russian-Ukrainian conflict continues to intensify, the time for crude oil, gas, and food prices to remain strong will be extended. This has caused great trouble for investors waiting for the March CPI data to be released. If the March CPI data once again exceeds expectations, the probability of a sharp interest rate hike of 50 BP or even 75 BP in May will increase dramatically.
As a result, after Brainard's speech-March meeting minutes revealed the details of the downsizing, the market ushered in a wave of rapid correction in the trading days before the March CPI was announced. Among them, NASDAQ's adjustments were significant, mainly due to concerns about downsizing and CPI explosion.
Second, Europe is falling into typical stagflation due to the turbulent geopolitical situation:CPI soared in March. Eurostat's latest data showed that the Eurozone consumer price index (CPI) rose 7.5% year on year in March, up from 5.9% in February. Energy product prices rose 44.7% year on year, which is the most important driver of rising inflation in the region. By country, the Eurozone's multinational presidents...