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In distinction to many different nations, the U.S. financial system doesn’t reply on to the extent of short-term rates of interest. Most residence debtors aren’t affected, as a result of they’ve long-term, fixed-rate mortgages. And, once more in distinction to many different nations, many U.S. households do maintain a big quantity of their wealth in equities. As a outcome, they’re delicate to monetary situations: Fairness costs affect how rich they really feel, and the way keen they’re to spend fairly than save.
https://www.bloomberg.com/opinion/articles/2022-04-06/if-stocks-don-t-fall-the-fed-needs-to-force-them?sref=ZMFHsM5Z
The writing is on the wall. Shares will go down considerably. That does not imply it’s best to panic promote every little thing and sit in money, however it might be smart to de-risk your portfolio by getting rid firms and thematic ETFs which were swept up within the bubble. Holding the S&P 500 can be painful sufficient.
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