So why are the markets falling? The federal reserve bank in USA controls short interest rates but the market controls among other the 10 year yield . Anticipated growth and inflation has pushed 10 year yield higher meanwhile it’s closed the gap to the yield on stocks on the big USA indexes causing selling pressure.
I think this will calm down soon for several reasons . We are still not even near the recovery in the global economy that the worlds central banks want to see . The FED can also stimulate long yields by buying bonds . Mutual funds sell temporarily because they get outflow not because they believe in a crash.
We have MASSIVE GREENS DEAL in BOTH Europe and USA which hasn’t even begun yet Will this be enough ?
WELL unless M.r Biden wants his term destroyed by a market crash (which is too big to fail and will get him bored out of office) we’ll likely see pressure on FED To act
So if you don’t know why you’re selling . REFLECT . The world isn’t ending and the future for growth stocks certainly hasn’t either .
We’re likely just at beginning of a new green super cycle!
Good video below
