Rule #1: Buy what the Fed buys
Rule #2: Sell what the Fed stops buying
Sincerely,
@Trinhnomics
Rule #2: Sell what the Fed stops buying
Sincerely,
@Trinhnomics
https://twitter.com/RobinWigg/status/1465726728727367692
But note that while earnings are less important these days than the Fed, earnings represent economic fundamentals, as in macro.
And so the Fed can only sell in an upward economy, as in reducing the supply of liquidity when demand is high.
🤗🤗🤗
And so the Fed can only sell in an upward economy, as in reducing the supply of liquidity when demand is high.
🤗🤗🤗
But the difference between US equities & say, EM Asia, is that US earnings are GLOBAL. US earnings reflect the US strength as well as global demand. When u sell US equities, u don't just sell on the Fed draining liquidity support but also u have to be bearish the US & global econ
Btw, allow me to correct myself, Korean equities are very global, it's just ASEAN that isn't so much.
Most of Samsung Electronics' earnings are from abroad so the Kospi performance is linked to BOK liquidity (draining due to rate hikes) & global demand for chips/electronics.
Most of Samsung Electronics' earnings are from abroad so the Kospi performance is linked to BOK liquidity (draining due to rate hikes) & global demand for chips/electronics.
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