To understand when stocks will go back up, investors should carefully watch the next Federal Open Market Committee (FOMC) meeting on Nov. 1-2, when analysts expect another increase of 50-75 basis points. Billions of dollars will trade hands that day as high-frequency traders digest the news.
Long-term investors, however, should pay closer attention to the tone of Fed Chair Jerome Powell, as well as his top lieutenant, James Bullard.
That’s because the two have become even more skilled than their predecessors at hinting at future rate rises without explicitly giving them away.
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