FOMC coming in hot
Or hawkish? Who’s to say.. My Financial Advisor that handles my Roth told me there would almost definitely be a rate cut in March. She also told me this in January so she’s probably changed her mind. Most people have. I believe they won’t cut, the markets done too well lately. The fed has to be scared to let the liquidity back in. Even though the economy probably needs a rate cut I don’t see it happening, the market sentiment just doesn’t seem there. If they did anything more than a .25% rate cut I would be astounded. My biggest question lately has been is a rate cute good or bad for the SPY. In my mind it would make sense that it opens up liquidity and floods the market. But many professionals argue that a rate cut now would be bearish for the market and historically has. I personally don’t think we see a cut tomorrow. How that reflects in the SPY I have no idea. Maybe I purchase a monthly call and see how it plays out. Overall I’m bullish on the SPY this year so maybe the FOMC event allows me the opportunity to close out a monthly call early.