It has been seven years that people have been using stocks for any problems. You have a headache? No problem, buy stocks. You don’t have a job? No problem buy stocks. The bank is not paying you enough in interest? Buy stocks. It has been working for so long that it became a joke especially when you know that the stock market rally was nothing but fake. All of this was orchestrated by the Fed.
Now that the Fed raised interest rate by only a quarter of a point, everything is going to hell. Of course, this is no surprise to me. The stock medicine is not working anymore. Hopefully, the fundamental of the weak economy will start to matter.
The problem is that the Fed will not let the economy to heal and crash which is desperately needed. It is just a matter of time before the Fed gets back to the printing game again because as they say it worked so well the last time. However, how can they say it worked so well if the Fed cannot stop the stimulus without crushing the markets and the economy.