It Doesn't Matter What The Fed Does Tomorrow

The Fed's is set to deliver its policy decision tomorrow, and markets are pricing in a 50 bps hike.

But even if the central bank delivers a 75 bps hike, it won't be enough to tame inflation.

That's because inflation is being driven by factors outside of the Fed's control, such as the war in Ukraine and the supply chain crisis.

A 75 bps hike would be the biggest increase since 1994, so it's undoubtedly a big deal.

However, it's unlikely to have a significant impact on inflation.

That's because the Fed's rate hikes take time to work their way through the economy.

By the time they do, the factors driving inflation today may have already subsided.

So, what should investors do?

The best course of action is to stay invested and ride out the storm

The stock market has weathered many storms before, and it will weather this one too.

In the meantime, investors should focus on investing in quality companies with strong fundamentals.

These companies are more likely to weather the storm and emerge stronger on the other side.

Here are some tips for investing in quality companies:

• Look for companies with strong financial performance.
• Invest in companies with experienced management teams.
• Avoid companies with high levels of debt.

Patience is the key to investing.

Don't try to time the market.

Instead, invest for the long term and ride out the ups and downs.

By following these tips, you can increase your chances of success in the stock market.

So stay invested, stay patient, and let the power of compounding work its magic.