Dear readers, US stocks slided significantly yesterday night, after Federal Reserve Chair Jerome Powell commented that the US economy will need tight monetary policy for some time before inflation is under control.
With the aforementioned development,
Dow Jones was down by 3.03%
S&P 500 retreated 3.37%
NASDAQ Composite went south by 3.94%
Well, notwithstanding the decline, I am not surprised at all at the market movements because this trading year will pretty much driven by what the Federal Reserve will do, as what we have also seen year-to-date.
Investors will have to price in volatilities in their investment game plan for the short-term. For the long term, in my opinion, be prepared for the next stock markets financial corrections since 2009. This is because it is simply natural for something to come down after ascending for years.