The world is undergoing a geopolitical shift right now like of which's not seen since the end of WWII.
International institutions/mechanisms that put in place after WWII and are supposed to uphold peace are either not relevant anymore (UNSC) or not functioning properly (NATO).
Western Civilisation is in a catch 22 vis a vis Russia regarding Ukraine situation. If they decide to go all in in support of Ukraine against Russia in a prolonged war, that'd not only devastate global economy even more, but maybe even risk a nuclear confrontation down the line. If they decide to cede territory to appease Russia, that'd encourage and empower revisionist countries even further that are already bent on changing the status quo regarding the position of US and her currency in a global sense.
China with it's Zero Covid Policy, distrupting global supply chain and they've started to flex their muscles over Taiwan. If they make a move and US response would be similar to that of Ukraine (until now), that'd raise alarm bells over at Japan and South Korea who will suddenly realise that they're surrounded by expansionist dictatorships and their world hegemon suggar daddy is no longer dependable. This would mean a complete failure of US security net and US policy in the Pacific region.
In other news, since world's biggest grain suppliers are busy fighting each other, countries around the world are banning food exports to accomodate their own people which will almost certainly result in global food supply problems and maybe even famine in certain parts of the world.
So, FED's rate hikes will not result in a recession, but in a stagflation, economy will come to a halt but inflation will keep on rising because of all these factors. FED can only control the demand (to an extent). They have no power over the rising energy/food prices or supply chain distruptions. Not only will US enter into a stagflation but because of the rate hikes, developing and 3rd world countries will be unable to pay their interest on their external debt and they'll start to default one by one, like dominoe stones.
Either the whole world will decide to sweep all of these problems under the rug to live another day, or we're all heading into a confrontation in a massive scale.
So I advise you all not to trust any price based on technical levels. Give it 6 months to see where the world is heading and invest accordingly.
Remember folks; fundamental analysis > technical analysis. Stay safe.
International institutions/mechanisms that put in place after WWII and are supposed to uphold peace are either not relevant anymore (UNSC) or not functioning properly (NATO).
Western Civilisation is in a catch 22 vis a vis Russia regarding Ukraine situation. If they decide to go all in in support of Ukraine against Russia in a prolonged war, that'd not only devastate global economy even more, but maybe even risk a nuclear confrontation down the line. If they decide to cede territory to appease Russia, that'd encourage and empower revisionist countries even further that are already bent on changing the status quo regarding the position of US and her currency in a global sense.
China with it's Zero Covid Policy, distrupting global supply chain and they've started to flex their muscles over Taiwan. If they make a move and US response would be similar to that of Ukraine (until now), that'd raise alarm bells over at Japan and South Korea who will suddenly realise that they're surrounded by expansionist dictatorships and their world hegemon suggar daddy is no longer dependable. This would mean a complete failure of US security net and US policy in the Pacific region.
In other news, since world's biggest grain suppliers are busy fighting each other, countries around the world are banning food exports to accomodate their own people which will almost certainly result in global food supply problems and maybe even famine in certain parts of the world.
So, FED's rate hikes will not result in a recession, but in a stagflation, economy will come to a halt but inflation will keep on rising because of all these factors. FED can only control the demand (to an extent). They have no power over the rising energy/food prices or supply chain distruptions. Not only will US enter into a stagflation but because of the rate hikes, developing and 3rd world countries will be unable to pay their interest on their external debt and they'll start to default one by one, like dominoe stones.
Either the whole world will decide to sweep all of these problems under the rug to live another day, or we're all heading into a confrontation in a massive scale.
So I advise you all not to trust any price based on technical levels. Give it 6 months to see where the world is heading and invest accordingly.
Remember folks; fundamental analysis > technical analysis. Stay safe.