Investors are expecting a soft landing scenario with no recession
- 14 July 2023
- Posted by: Federica Montella
- Categories: eToro CopyTrader, Investing
Soft landing
The Federal Reserve is working to bring down high inflation in the US by implementing a restrictive monetary policy.
The latest, Consumer Price Index (CPI) has shown an inflation decrease from  9.1% in June 2022 to 4% in May 2023 and 3% in June of this year.
On 25-26 July, the Federal Reserve will meet to decide the next action and the majority of the economists, almost 95%, are expecting an interest rate hike of 25 basis points.
If the expectations will be met, at the end of July the Federal Fund rate will reach the highest interest rate level in 22 years, attesting in a range between 5.25% and 5.50%.
Some investors are betting on the fact that, since the inflation slowed down last month, the July Fed’s rate increase will be the last one for this year.
Moreover, the labour market is still strong and the economic data are still positive, so there is more than one reason to believe that inflation will soon return to its 2% target without going into a recession.
The so-called, soft landing, is more likely than ever now.
Meanwhile, James Bullard resigned as President of the Fed’s St. Louis branch to become the dean of a university business school.
Portfolio update
I am rebalancing my portfolio gradually.
I am adding new positions and will close some in the upcoming months.
If you are already copying my portfolio, please keep the copy open.
If you are thinking of copying me, now could be the right time, if you can invest for the long term (years).
Remember to copy the open trades to optimize the copy.
Remember to set the stop loss on the copy at the minimum level, so you don’t get stopped if there is a correction.
Thank you, everyone. Have a nice day!
Steps to follow to copy my portfolio automatically:
1. Create an eToro account here: https://federicamontella.com/go/etoro/
2. Verify your account and make a deposit of at least 200 USD (you can deposit in any currency, like GBP and EUR)
3. Go to my profile page: https://federicamontella.com/go/etoro-passionforprofit/
4. Start the copy (copy open trades and set the lowest stop loss possible, to allow some movement)
5. Enjoy, it’s all automatic. You will make passive income 24/7
Let me know if you have any questions.
Federica Montella
eToro Popular Investor
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