All eyes will be on the Federal Reserve meeting midweek, as bulls pin their hopes on some dovish words, if not a pause in the rate-hike playbook, to lure buyers back in to this reeling stock market.
It’s almost Christmas, after all.
But one way or another, there will be fireworks, according Chris Puplava, CIO at Financial Sense Wealth Management, who says the powwow will likely end the consolidation we’ve been seeing in the market over the past two months.
“If the Fed turns a deaf ear to the market and does not signal a pause in rate hikes, we are likely to see markets in the U.S. and globally continue to sell off and break down to new lows,” he explained in our call of the day. “However, if the Fed finally acknowledges the material slowdown underway in interest-rate sensitive sectors, like housing and autos, and signals a pause we will likely be treated to a sell off in the dollar DXY, -0.21% and a rally in risk assets over the coming weeks.”