Growth stocks won’t trounce dividends stocks in 2024 🤦‍♀️ undervalued stocks will even trounce growth stocks as growth stocks is at high valuation now which the excess liquidity comes will goes into undervalued stocks 1st and then only followed by high yield and dividends stocks and the only growth stocks will comes in

Federal Reserve holds interest rates at 22-year high, signals 3 cuts next year

The Federal Reserve maintained its benchmark interest rate on Wednesday in a range of 5.25%-5.50%, the highest in 22 years, but signaled it will likely cut interest rates by a total of 75 basis points, or 0.75%, in the year ahead.

In September, the Fed's forecasts had suggested the central bank would cut interest rates by 0.50%. The Fed has moved in 25-basis-point increments over the last year, indicating the central bank now expects to cut interest rates three times in 2024.

These projections come as the central bank now expects inflation to fall to 2.4% next year — down from 2.5% forecast in September — and drop further to 2.2% by 2025.

Wednesday's policy statement tweaked language leaving room for rate hikes.

"In determining the extent to which any additional policy firming may be appropriate," the statement read, "… the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments."

Earlier statements had not included "any" before the mention of additional rate hikes, suggesting the central bank is now biased against further interest rate increases. This policy meeting marks the third meeting in a row the central bank has held rates at current levels.

Fed Chairman Jerome Powell said at a press conference Wednesday afternoon that "we added the word 'any' as an acknowledgement that we are likely at or near the peak rate for this cycle."

He added, though, that "participants did not want to take the possibility of further hikes off the table, so that’s what we were thinking."

Powell reiterated several times at his press conference that the Fed still needs to see more evidence that inflation is moving down to its 2% goal and made it clear the economy could still move in surprising directions next year.

"Nobody is declaring victory," he said. "That would be premature."

While "there is little basis for thinking that the economy is in a recession now," he added, "there is always a probability that there will be a recession in the next year, and it’s a meaningful probability no matter what the economy is doing."

The Fed chair also declined to provide any guidance on when the Fed might cut rates. Some on Wall Street are expecting a cut as early as March.

But he made it clear that Fed officials are beginning the conversation of when to dial back policy restraints. He said it was a "topic of discussion" at the central bank’s meeting Wednesday and "this will be a topic for us looking ahead."

Powell, responding to a question from Yahoo Finance’s Jennifer Schonberger, made it clear the Fed wouldn’t wait until inflation gets all the way down to 2% to start cutting.

"It would be too late," he said. "You would want to be reducing restriction on the economy before you get to 2% … so you don’t overshoot."

'Remains elevated'
There were other clues about the current thinking of Fed officials in Wednesday's policy statement.

Acknowledging progress in inflation, officials changed long-held language in the statement to note that inflation has "eased over the past year, but remains elevated." Previously, the central bank had merely referred to inflation as "elevated."

Officials also acknowledged in their statement the slowdown in the economy since the torrid pace of over 5% in the third quarter. The Fed sees the economy growing 1.4% next year, down a tenth from the 1.5% forecast in September.

Fed officials still see the unemployment rate rising to 4.1% next year.

Recent readings on inflation do show it dropping closer to the central bank’s target. The Fed’s favored inflation measure — the core Personal Consumption Expenditures index, which excludes volatile food and energy prices — clocked in at 3.5% for the month of October, down from 3.7% in September and 4.3% in June.

The Consumer Price Index on a core basis showed inflation rose 4% in November, the same clip as in October.

A surprise fed update. They are looking at possible easing of rate sooner than expected.

Expect market to be bullish again

Ecb keep rates steady with no cuts being consider yet.

So no extra gift from euro this round.

Powell is giving Christmas presents.

All in. 

Bull charging.

AMERICA’S MAIN STOCK MARKET INDEX DOW JONES JUST HIT AN ALL TIME HIGH

GERMANY’S MAIN STOCK MARKET INDEX DAX JUST HIT AN ALL TIME HIGH

FRANCE’S MAIN STOCK MARKET INDEX CAC JUST HIT AN ALL TIME HIGH

INDIA’S MAIN STOCK MARKET INDEX NIFTY JUST HIT AN ALL TIME HIGH

What about Bursa Malaysia? 😂😭🤣😅

FYI, KLCI 2020 Jan to mid-Dec outperformed Dow Jones of the same period. after that, kirk kirk kirk

You know, KLCI is really a mystery to me why it is so stagnant.
It's been 3 years... still around -15% from the peak of 2020.

The bull market is dead in Malaysia? 

has it ever live 

its been dead or zombied for the past few years

for malaysia to bull you need china to be bullish..

for china and malaysia to be bullish..you hope US also bullish and not to fall into a recession..

so in the end.. or

this is normal bursa. not dead nor alive 

Bursa been dead since the peak in Jun 2014 at 1800+

Expectations are high for the Malaysian stock market to continue its strong performance after the FBM KLCI hit a record close of 1,895.18 points yesterday, just a whisker away from 1,896.23 — the highest intraday the benchmark ever hit back in July 2014, right before oil prices plunged.

You know, KLCI is really a mystery to me why it is so stagnant.
It's been 3 years... still around -15% from the peak of 2020.

The bull market is dead in Malaysia? 

KLCI has been stagnant/downtrend since June 2014.