There is still ample liquidity supporting the markets

While higher rates may have negative impacts on equity portfolios in the long run, such as economic weakness or investors moving away from equities, I do not see this affecting the stock market yet. The markets are still receiving substantial support from the large amount of liquidity generated by US central bank during the pandemic, and we are currently only -12% off from the peak stimulus provided by the US Federal Reserve.

Last week, global markets including S&P 500, HSI, and China A50 bounced off the forecasted 38.2% retracement level. The markets are still showing a bias towards the upside, but I like to also warn against potential short-term volatility.

Moving Forward, my portfolio strategy continues to focus on adding stocks and seeking out short-term trading opportunities during market weaknesses.

Disclaimers apply

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