Before Powell said what he said SaaS stocks were DEEP in the red, -5% to -10%. Many other stocks were in the red too, FB, BABA etc. Now the same SaaS stocks are mostly up those +5% to +10%. FB also is up 5%, our very own BRK 2.5% etc.
It completely turned around 180 degrees because of Powell essentially saying that while 0.5% increases will continue to come there won’t be 0.75%. Does this market reaction really makes sense? I see it just as a sign that the markets are crazy, completely irrational currently.
And this from Powell: “It’s a very difficult environment to try to give forward guidance sixty, ninety days in advance” also is not exactly reassuring. Guidance for just 60 days can’t be expected, is too much asked?