Monday 21 September 2015
Friday 18 September 2015
How fast and far interest rate moves is more important than the first raised
Another no outcome FOMC. Like what I said - Janet Yellen knows the consequence of raising interest rate when everyone is printing money.
Is really no good when we have too much of "The boy who cried for the wolf" Interest rate definitely needs to raise. What Janet did now was to buy time. Timing of raising the interest is one thing. Most important is how fast and how far the interest rate moves after the first raised.
Traders and investors, we just need to be on guard and trade what you see.
************************ CONTINUE WRITING - PART 2 ***************************
I did some researched on the weekend. Instead of opening a new file, I decided to continue writing it inside this "How fast and far interest rate moves is more important than the first raised".
As I mentioned, Janet knows the consequence of raising the interest rate. She not only buy time but she was doing something which I called "psychology game/approach".
When Yellen announced FED is not going to increase the interest rate, US market gone up higher. However, an hour later before closing, the indices slide down with an approximate angle of 75 degree. Next day (last Friday), Europe and the US continued to fall. Europe 3 major indices came down around 1.4 to 3%. US declined with an average of 1.45%.
Past one months, global market falls because of fear. Fear on US may raise the interest on September. But last 2 days, market fall was because of uncertainty.
Investors, traders, fund.........hate uncertainty. Watch how global market react over the next few days/weeks. If market continues to fall, this is where the so called psychology approach comes in. At that time, when US starts to raise their interest rate, even there is an impact on the equities market, it won't be that great. And don't be surprise, market may welcome the approached as a clear signal that people has been waiting for has finally surface.
Next question is - how fast and how far the interest moves after the first raised. The is very important as it is going to affect not only the equity market but also the future and property market.......
Is really no good when we have too much of "The boy who cried for the wolf" Interest rate definitely needs to raise. What Janet did now was to buy time. Timing of raising the interest is one thing. Most important is how fast and how far the interest rate moves after the first raised.
Traders and investors, we just need to be on guard and trade what you see.
************************ CONTINUE WRITING - PART 2 ***************************
I did some researched on the weekend. Instead of opening a new file, I decided to continue writing it inside this "How fast and far interest rate moves is more important than the first raised".
As I mentioned, Janet knows the consequence of raising the interest rate. She not only buy time but she was doing something which I called "psychology game/approach".
When Yellen announced FED is not going to increase the interest rate, US market gone up higher. However, an hour later before closing, the indices slide down with an approximate angle of 75 degree. Next day (last Friday), Europe and the US continued to fall. Europe 3 major indices came down around 1.4 to 3%. US declined with an average of 1.45%.
Past one months, global market falls because of fear. Fear on US may raise the interest on September. But last 2 days, market fall was because of uncertainty.
Investors, traders, fund.........hate uncertainty. Watch how global market react over the next few days/weeks. If market continues to fall, this is where the so called psychology approach comes in. At that time, when US starts to raise their interest rate, even there is an impact on the equities market, it won't be that great. And don't be surprise, market may welcome the approached as a clear signal that people has been waiting for has finally surface.
Next question is - how fast and how far the interest moves after the first raised. The is very important as it is going to affect not only the equity market but also the future and property market.......
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