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Trying to crack a walnut with a sledgehammer

For a long time, traditional share market analysis has included an array of macro and micro indicators, from gauging volatility, using technical analysis, and researching particular sectors and industries to predict future share price movements.

But lately, investors are being forced to overlook these tried and true indicators and lock focus on any monetary policy announcements released by the Federal Reserve. Recent history has consistently shown the almost instant knee-jerk reaction within minutes following an interest rate announcement that occures in markets worldwide, highlighting its depandence.

As we have all seen, the Federal Reserve is famously known to use this extremely influential tool to regulate inflation, steer away from any potential recessions, and ensure our market is heading in the right direction. But lately, it has had little effect, and the tool seems redundant.

Beyond the well-known indicators like; inflation, debt, consumer confidence, and commodity prices, you may have noticed the consistent chatter from market commentators talking about interest rates because it paints the most transparent picture of our current financial environment.

Well, the negative mindset developed from this sentiment has forced investors to look at monetary policy announcements to guage market health, search for sectors that can weather the storm, and look for capitalising opportunities.

Tune into this week’s episode hosted by Tim and Sam, where they go over the most recent key economic data, sectors to safeguard your portfolio, and how investors are bracing themselves for the future.

Emerald Financial

Emerald Financial is a financial services firm founded in 2005. We offer a diversified range of services, including; stock research and data, education courses, portfolio services, and financial news. Over the years, we have educated thousands of Australians to trade equities and derivative markets.

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