Is the Federal Reserve out to crash the S&P 500, or are big investors?

Discussion in 'Finance' started by wgabrie, Oct 14, 2022.

  1. wgabrie

    wgabrie Well-Known Member Donor

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    So, I saw a news article in the past few days that seemed to indicate that the Federal Reserve was out to crash the S&P 500. Destroy the markets with high interest rates. But I can't remember where I read it, so I can't provide a link.

    But I have my own theory. That it is actually big investors who are out to crash the S&P 500 through market manipulation, they want a return to the low-interest rates period from the Fed that we've had in place since the Great Recession.

    The Federal Reserve won't budge from its plan to bring inflation down through high interest rates. So, the big investors, I suppose, have brought markets lower to try and trick the Fed into reversing course on its current plan.

    Why do I think that? Because the markets in 2022 are trending lower than in 2021. And the only way that would happen is if these big investors are selling stock in large quantities to lower prices.

    Is the Federal Reserve out to crash the S&P 500, or are big investors?
     
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  2. Durandal

    Durandal Well-Known Member Donor

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    It's an interesting hypothesis. I think it's remarkable how much constant babble there has been about a looming recession and about the Fed going too far. The economic data have not indicated a recession, but there has been constant talk that one is imminent anyway. Certainly the movements we're seeing are due to institutional investors more than retail. It would be mighty hard, however, to prove any intent behind those sales and purchases.
     

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