What will happen when Fed rate hike and raising inflation.
In classic economy cycle when we are in boom wave, especially towards the peak, commodity will be more expensive. In reality, the commodity is in all time high.
With everone getting ready for recovery from Covid, consumption will pick up. Manufacturer is planning to increase capacity. Many of the manufacturers have their capacity upgrade complete around 2024. This mean that supply will be getting more and more at least until 2024.
This economy boom always couple with increase of fed rate to control the economy expansion from pre-mature overheating. This rate hike will also cause inflation raising.
In my opinion, in this last up wave market, we should keep debt low and buy asset which is outperform inflation or inflation hedged. I prefer to use equity/stock. I always like to use stock in S&P500 to build my portfolio.
You can use the moomoo market heatmap to spot the stock you want to add to your portfolio.
After you have your stock, you may want to consider sell call option to collect regular rental income the the stock you own.
With everone getting ready for recovery from Covid, consumption will pick up. Manufacturer is planning to increase capacity. Many of the manufacturers have their capacity upgrade complete around 2024. This mean that supply will be getting more and more at least until 2024.
This economy boom always couple with increase of fed rate to control the economy expansion from pre-mature overheating. This rate hike will also cause inflation raising.
In my opinion, in this last up wave market, we should keep debt low and buy asset which is outperform inflation or inflation hedged. I prefer to use equity/stock. I always like to use stock in S&P500 to build my portfolio.
You can use the moomoo market heatmap to spot the stock you want to add to your portfolio.
After you have your stock, you may want to consider sell call option to collect regular rental income the the stock you own.
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