The stock market is very sensitive to any change in Fed policy but the selloff we have seen in growth stocks recently came without the Fed raising interest rates. Why is this and why are they keeping their easy monetary policies in place when there are fairly clear signs that the economy is improving?
When they do actually increase interest rates that will probably increase this growth selloff and possibly move more towards a value style of investing. So it’s really important to understand what will make them move their policy and also what kind of indicators to look at to guess what their policy will be.
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