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Will This Satisfy the Fed? (Market Update from Charles Green)

Charles Green here, Senior Market Analyst here at Traders Agency.

Here’s today Market Pulse 360.

Market Pulse 360 for September 1, 2023

Non-Farm Payroll numbers were released this morning showing an increase to 3.8%. This is what the Fed wants to see, which was the most sticky of inflation factors over the past year.

This is GOOD NEWS, making it less likely the Fed will increase rates much further, if at all. The other sticky factor was housing cost, which is 30% of the Consumer Price Index and coming down too.

This demonstrates the economy is slowing but NOT slowing too much to cause a recession. To be sure, we are getting closer to the Fed’s 2% target for inflation. With the 10-year US Treasury rate coming down from a high of 4.25% last week (now at 4.08%) and the Fed unlikely to raise interest rates much further, the “soft landing” from 11 interest rate hikes over the past 15 months is playing out. This provides acceleration for the interest-rate-sensitive tech sector, especially AI stocks.

The next important economic report will be the CPI on September 13th at 8:30 ET. If this number is below estimates, it’s a certainty the Fed will not raise interest rates any further.

And if you are not already positioned in the right stocks, you will miss the next big push up – especially going into the Christmas holiday season and an improving retail sector.

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A Bit More About Me

My specialty is understanding financial markets and the drivers that influence longer-term direction. I’ve been an active trader focusing primarily on stocks for over 20 years.

I’ve also:

  1. Been an adjunct finance professor for nearly 20 years
  2. Worked as a financial consultant with Merrill Lynch managing millions of dollars 
  3. Earned a Master of Science Degree in International Business and Finance from Georgetown University and a Bachelor in Arts Degree in International Studies from George Mason University.
  4. Spent 14 years as a Marine (I enlisted at age 17) traveling all around the world

My education, work and life experience gives me a broad view of the world, financial markets, and life in general that informs my trading and investment decisions. 

My passion is helping others to take advantage of the best market opportunities to achieve their financial goals.  

This gives me the greatest satisfaction, and it’s the reason why I continue to teach in the classroom and outside of it today with every activity in which I engage. I believe that I succeed only if clients succeed.  

I am a very unlikely success story. And this is only because I believe that anything is possible with the right knowledge, focus, and winning mentality! When you have that, success is just a matter of time.  

Charles Green
Senior Market Analyst, Traders Agency

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