The Fed x Big Tech - Who Wins?
Fed day today. We assess the outcome after the close.
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Be Hated Now Or Hated Later
Those are the choices for Federal Reserve Chairs. In 2021, Powell chose to be hated later, upon declaring inflation to be transitory, likely to fall away naturally etc. Cue stocks to the moon, everyone loves Jay. 2022, fastest set of rate hikes since the invention of differential equations, everyone hates Jay except for energy investors.
Core CPI remains elevated even if headlines are easing. So now the Fed has a 2021 choice. Stop rate hikes now, risk assets to the moon, Jay is the popular kid at school. Or hike now or next month, or otherwise keep the leash on markets via QT methods, stocks may lose some ground, down with Jay. Truly a lose-lose situation for the J-Pow.
By the time our Pro tier webinar comes around today at 5pm Eastern, the first reaction of risk assets to the Fed’s decision and commentary will be known. We’ll spend our time looking at how tech reacted and where it may move next.
Join us.
Pro-tier members, just scroll down and you can register for the session below. We’ll post the video after the event as always, and if you have questions just fire them off during the live session or post them in comments to this note ahead of time.
If you’re yet to become a Pro member, now is a great time to join, for two reasons.
One, we’re at a key point in the capital rotation schedule. Tech stocks have run up big - as we were saying was likely back in Q4 2022 and Q1 this year all through our webinars (check the recordings!). Will they now take a breather as institutional capital rotates out of Big Tech and into sectors names yet to move up and out of the accumulation phase? This is the key topic upon us in the tech sector.
And two, on 1 July, our price for Tech Select Pro membership rises from $499/yr to $749/yr. We never raise prices on our existing members. The price at which you join is the price you keep for as long as you’re a subscriber. Sign up now to lock in the current low price.
We’re confident this is excellent value. You can sign up from the link below - choose “Pro” from the subscription options - or, any problems, just email us at minerva@cestriancapital.com and we’ll ease the way.
See you at 5pm Eastern live!
Alex King, Founder, Cestrian Capital Research, Inc.