The WeekendInvesting Newsletter - 09 Nov 2023

Freshly Brewed - Market Perspectives from WeekendInvesting Research Desk

What to expect after a FED Pause – SURPRISE

The Federal Reserve (Fed) plays a crucial role in shaping the economic landscape of the United States. One of the key tools at its disposal is the interest rate. By adjusting the interest rate, the Fed influences borrowing costs, inflation, and economic growth. As investors, it is essential to understand how changes in interest rates can impact the financial markets. In this article, we will explore an interesting data point from Stansberry Research that suggests a strong correlation between Fed pauses in interest rate hikes and positive market performance.

According to the report, whenever the Fed pauses the interest rate, the next one-year returns in the American market have been phenomenal. Over the last six instances, excluding the year 2000, the market rallied between 16% to 39% in the year following the Fed pause. This significant uptick in market performance after a Fed pause highlights. . . .

Momentum can help you navigate bubbles!

Bubbles have long been a recurring theme in financial markets, with various asset classes experiencing periods of rapid growth, followed by dramatic collapses. The phenomenon of bubbles is driven by human greed and the dynamics of supply and demand. In this article, we will explore a historical perspective on bubbles and discuss a rational approach to riding these waves of market volatility.

To gain a better understanding of these market movements and navigate them effectively, one approach is to . . . .

WeekendInvesting Daily Byte

The stock market had a relatively dull day, with the Nifty index testing the previous day's trading range on both the upside and downside. The market seems to be in a consolidation phase, waiting for a potential breakout in the near future. The upcoming session, called Muhurat session, is expected to be significant. Traditionally, Muhurat sessions start on a high note and end on a low note, opening with a gap up and closing the gap is usually a trend on Diwali.

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