Today, the Fed released their "Fed Minutes" and showed they're planning on acting more hawkish than everyone previously thought. The market sold off hard, with growth taking the biggest hit for obvious reasons.
Looking at ARKK and a bunch of other growth names, it appears that we're in the semi-early innings of a stage 4 markdown if the Fed continues down this hawkish route. If so, think there's a decent shot that we head towards the pre-pandemic high as the Fed unwinds and the market prices this in.
In 2018, the taper tantrum lasted 3 months from peak to trough. Obviously depends on what the Fed does from here, but be prepared for this scenario (posted on chart)
Btw, if this plays out, all risk assets will get hit hard including crypto.
Looking at ARKK and a bunch of other growth names, it appears that we're in the semi-early innings of a stage 4 markdown if the Fed continues down this hawkish route. If so, think there's a decent shot that we head towards the pre-pandemic high as the Fed unwinds and the market prices this in.
In 2018, the taper tantrum lasted 3 months from peak to trough. Obviously depends on what the Fed does from here, but be prepared for this scenario (posted on chart)
Btw, if this plays out, all risk assets will get hit hard including crypto.