Classic Channelling with a clear projection of short-term downfall; Major index funds are pressuring the end-of-year selling.
Markets are currently in the late stage of the business cycle; contraction will occur next and the S&P 500 target will be based on the data of the upcoming CPI and the Fed’s decision. The Effects of Quantitative Tightening will begin to appear in the upcoming months. Restraining liquidity and increasing interest rates disincentivize companies from borrowing and investing in growth. Such measures, therefore, cause risk to financial stability and adversely affect equities. This situation, however, is not sustainable in the long run.
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