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Be Careful the Immediate Enthusiasm
We are seeing the now usual run up in stock prices ahead of an expected Federal Reserve rate hike. This has become the standard recipe for short term trading success in recent months. The story usually goes something like, everyone knows there is going to a be a rate hike, and therefore the bad news is already priced in. The clever thing to do, is to fade that 'sell the rumour' downward force, by 'buying the fact'. That is, the actuality of the rate hike. This is a common trading and investing tactic. It has also been called the “front page effect”. Where, once a market movement became big enough to be ... (full story)