Howdy Fed : Stock Bubble got bigger

 Blame It On The Bot Traders 

Yesterday US Federal Reserve increased Interest Rates to combat hyperinflation, as they were expected to do. But markets are driven by Bots which trade in accordance with market expectations.  So stock market trading bots started buying risky shares and assets with borrowed money.

Actually when interest rates go up, banks have to pay more for such trades, human traders with natural intelligence know that. But the bots have AI, the abnormal pretence of intelligence, their parameters for "Market Expectations" on Interest rates matched , so they bought and are still buying "a hell of a lot" shares.

Let's look at the Fundamentals, shall we, has anything changed?

1. Ukraine War - still Ongoing. 

2. Russian Oil Embargo & Market sanctions- still exist. 

3. Pandemic- still raging in places where stringent testing is ongoing. 

4. China- still under Covid Lockdown and without a trade deal with US or its European proxies. 

5. Crude Oil Price- still over $100.

6. Media - still dumb, under all those layers of makeup . 

No, nothing has changed. Cost of borrowing dollar has increased and Federal Reserve wants you to exercise caution,  that's what "Interest Rate Hike" means. 

If you go with the flow, your hands will be burned , if you are a human that is. Bots have no hands and can't even be burnt. 

So take care humans, this exuberant trade has no legs and don't sit on Bubbles mistaking it for a couch. Corrections will be coming in 24 hours or in 24 days. 

US is heading for recession and perhaps towards end of "Dollar Standard".