As expected, confirmed US interest rate hike to 1.5-1.75%. It is hard to stop the wheel of uptrend macroeconomy, higher GDP, lower unemployment rate, etc. This will lead the global economy and stock market towards positive direction.
However, due to high optimism stock market, any unexpected negative political action or financial incident could trigger the next global financial crisis which could stop the wheel of growing economy. Market correction (eg. threat of trade war, worry of interest rate hike or surging bond yield, etc) is actually healthy as it helps to prolong the bull run in stock market.
US stock market has been stagnant after the 10% correction in Feb 2018, S&P500 is still supported above 2700 points, bull market is still intact but short term momentum is slowed down.
US 10 years bond yield is near to 3%, US interest rate hike has another 1-2 year to catch up with similar level as bond yield. Global stock market is walking on a layer of thin ice, mainly suitable for short term trading (who may consider to buy), not for long term investor (except planning for exit).
A smart investor or trader would learn to adopt the right action (Buy, Hold, Sell, Wait, Shorting) aligning to own personality and current market condition. Sign up for free stock investment course by Dr Tee to learn 10 strategies of stock trading and investing (including impact of US interest rate hike and other indicators).
