3min chapter

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Ep. 189: John Boik: Lessons Learned From Stock Market Legends

Investing With IBD

CHAPTER

The Market's Reaction to the Fed Announcement

The market is all about money okay it's all about investing in companies that are making money or growing their businesses to make more money. When the price of money goes up the market turns the other way because things get expensive and then everything's getting expensive and inflation starts to rise so inflation is rising the Fed raises the price ofmoney to try to knock it back down. Those are the main key economic points that the market reacts to and that's what they've been doing for past 12 months you see that the market foresaw this back in November of last year it started the it peaked and then started dropping.

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