US Stock Prices Tugged Around

January 18,the January New York Fed manufactures index was releasedand showed an unexpectedly worsening condition. It also affected stock prices, which fell.

Yesterday (February 1), the January ISM manufacturing index was released and it was a solid, unsurprising result.

The stock market, having been pressed down, somewhat recovered.

Since the last FOMC meeting, with inflation running wild, the Fed signaled a move to tighten monetary policy aggressively. Naturally, the stock market was affected and stock prices declined.

From around the end of last week, perhaps due to fear of a rapid drop in stock prices, FOMC members and others made comments saying that they would not hurry to tighten. With this sense of reassurance, equities recovered.

Going forward, a pattern of such up-and-down movements is likely to continue.

And in the end, there will likely be a sharp decline. It’s a usual pattern. The timing of the drop is difficult.

I think the correct strategy is to sell after a large rebound (take profits at the lower point).

Anyway, the Fed is, among its two mandates, shifting from maximizing employment to controlling inflation.

January US job growth was weak — White House aims to keep expectations in check - Bloomberg