💎Market U-turn 💎

A comeback and more

The equity market made a comeback from a massive collapse on the backdrop of several headwinds, especially on the tighter monetary policy and the expectation from the Fed and the military conflict in Russia. 

Panic was seen on Monday. This time, investors bought the dip and stayed through the end of the session. The swing was so huge that Pika Nat took the wrong side and continued to suffer a big loss on Russell 2000. 

Pika World will be probably on the sideline as we re-calibrate our strategy, given a continuous miss since the start of the year. 

All eyes on FOMC

Market participants will be focusing on the FOMC whether the Fed is ready to put its pedal off stimulus fully. Traders are now expecting four rate hikes which could curb inflation but choke some growth momentum. 

We will be looking at the potential statement of a March hike given that many of the economic data seem to have pointed to the lower side, probably giving the Fed some pause to consider the extent of the hawkish stance. 

Military Conflict is Real

As the NATO begin to send ships and jet fighters to Eastern Europe to combat Russia’s strong presernce, investors are now worry about geopolitical risk. The EU is also prepared to provide loans and grants that amount to more than $1 billion to Ukraine. 

There’s much on the plate. Pika World may take some breaks in between and we will be back with you in this rough time. 

Cheers,

Pika Nat.