After a choppy start to the week yesterday provided a welcome rebound. Our portfolio registered a 2.05% bounce with the FTSE100 and US Markets both recording strong gains.
In yesterday’s fed meeting Jay Powell again took a cautious tone and was extremely careful not to alarm markets with talk of immediate tapering or a timeline for rate hikes.
www.nytimes.com/2021/09/22/business/economy/fed-taper-interest-rate-increase.html
There were no surprises here and as such the markets reacted positively.
We are also seeing a strong rebound of $03333.HK (China Evergrande Group) at the HK open today, which is more good news for global markets. US Indexes are all presently in green by an average of 0.22%.
If we examine the likely scenario from here till end of year I think there is a strong chance that major indexes will continue their ascent upwards with smaller corrections along the way. I will be looking out for discounted opportunities to pickup additional US banking stocks such as $GS (Goldman Sachs Group Inc), $JPM (JPMorgan Chase & Co) as we roll on towards end of year. Bank stocks are likely to benefit from future rake hikes.