MillionaireEconomics

The Federal Reserve Effect on Assets

SP:SPX   S&P 500 Index
Hello friends, today I am showing you six charts - US Dollar (DXY), 10 Year Treasury Interest Rate, Gold, Bitcoin (BTCUSD), WTI Crude Oil and S&P 500 Index (SPX). These are some of the biggest traded assets in the world. The vertical lines on each chart represents the beginning of the month.

Over the three months since September 2021, the US Federal Reserve has been pointing to a reduction in balance sheet and dropping in hints of what the are considering (such as tapering, rate hikes and so on). This has directly impacted assets classes across the world as shown in these charts. There is no doubt that interest rates will go up if the Fed is openly saying they want to raise rates so it is with no doubt that the 10 year treasury is up. With that though oil has also been going up while other asset classes like Bitcoin, Gold and S&P 500 are going down. Interestingly the S&P 500 Index has not suffered as bad as Bitcoin has even though many consider them correlated in some way. This may be an indicator of what is to come soon. Lastly, the US Dollar seems to be getting stronger over the past few months and from my prior analysis of it (see ideas below), there is a strong potential for it to keep going higher. 2022 into 2023 will be a surely interesting year with what the Federal Reserve is looking to do.

There are many other asset classes I didn't review on this analysis. If you want to drop in others, feel free to do so. What are your opinions on this?

If you enjoy my ideas, feel free to like it and drop in a comment. I love reading your comments below.

Disclosure: This is just my opinion and not any type of financial advice. I enjoy charting and discussing technical analysis. Don't trade based on my advice. Do your own research!

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I find value in the data from LuxAlgo:
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