Many investors expected this week that the Federal Reserve would surprise with an extraordinary meeting to raise rates, but it did not happen.

Many investors expected this week that the Federal Reserve would surprise with an extraordinary meeting to raise rates, but it did not happen.

Many investors expected this week that the Federal Reserve would surprise with an extraordinary meeting to raise rates, but it did not happen.

Wall St.

I don’t know if hardly anyone is able to see what we have all the ingredients in the pot to create a long-term market ceiling, or that it really is that they do not want to see it and prefer to squeeze the most out of the cow before they collide with the reality of a market, which has been announcing for a long time that it is at the end of the cycle.

There are also many analysts who are blaming inflation as the cause of the drop we are seeing in consumer sentiment, when really what is happening is that the social mood is literally falling apart due to the rift that the monetary injection generated by the Covid-19 pandemic is causing between an ultra-rich society and the working class.

The former becomes even more ultra-rich, while the latter has turned headlong into growth stocks, new IPOs and the cryptocurrency market and begins to realize the mistake he has made in the cruelest way possible. .

Evolution of consumer sentiment

Evolution of consumer sentiment
Eduardo Bolinchesstock charts

And it is precisely this social mood which is driving down consumer sentiment. And what is worse, we are only at the beginning because many of them are still trapped in their bubble world and therefore completely unaware of the problem that is upon them. By the time they find out, it will be too late.

In fact, things may get worse because disorientation among analysts is beginning to reign. As evidenced by the case of Goldman Sachs, which a few days ago was very harsh announcing that they saw up to seven interest rate hikes in the present year after the hard data of inflation, for days later to speak openly of a possible recession, so they left all investors very doubtful.

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