Mike Khouw breaks down a trade on Temu-parent PDD Holdings.
U.S. investors have heard the investment adage "Don't fight the Fed," which suggests investors should not make investments contrary to the policy objectives of the nation's central bank. This is because monetary policy, whether through interest rates or asset purchases , has profound implications for asset prices, borrowing costs, and market sentiment. The Fed effectively cut rates to zero during the pandemic plunge, and the S & P had an extraordinary bull market.
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