The Fed: Creating A Goldilocks Environment

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Victor DergunovInvesting Group LeaderFollow5ShareSavePlay(7min)Comment(1)SummaryThe Fed's unexpected QE launch and dovish tone signal a potentially accelerated monetary easing cycle, boosting risk asset prospects.Despite initial bullish market reactions, the Nasdaq 100 reversed gains, presenting an attractive intermediate and long-term buying opportunity.Division within the Fed and Powell's lame duck status suggest future leadership may pursue more aggressive rate cuts and expanded QE.I maintain a bullish S&P 500 (SP500) outlook, targeting 7,000–7,200 by 2025 year-end and 8,000 in 2026, supported by resilient growth and easing policy. spawns/iStock via Getty Images While almost everyone expected the Fed to go through with another 25 bps cut at the December FOMC meeting, I must say, I was pleasantly surprised by the introduction of quantitative easing "QE," asThis article was written byVictor Dergunov54.03K FollowersFollowHi, I’m Victor Dergunov, MBA, and I’ve been an active investor for over 20 years. My passion for investing started early, and I’ve spent two decades honing strategies that consistently deliver results. Whether it's tech giants like Apple and Tesla or opportunities in commodities and crypto, I provide diversified insights to help you succeed. Join me, and let’s take your investing to the next level.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. I am long a diversified portfolio with hedges.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You
