The Stock Market’s Reaction to the Fed’s Announcements Highlights Traders’ Biggest Flaw

It's up to you to know how to take advantage of it and avoid being tricked!

Let's start with a little riddle:

Do you know what traders' biggest flaw is?

This flaw can be found in every country where traders operate. It's a flaw common to the vast majority of traders.

Can you guess?

It's their impatience!

Patience is not one of traders' main qualities. Jerome Powell's announcement on January 31, 2024, at the close of the Fed's first FOMC meeting was further proof if proof was needed.

All it took was for the Fed boss to announce that he would not be cutting rates as early as March 2024, and equity markets in America plunged by almost 2%. It may not sound like much, but 2% represents a valuation of around $500B on the S&P 500 today.

And yet, Jerome Powell's statement seems rather positive, as I'll explain below.