In this week’s newsletter, you’ll read about…

🗨 Important notes from FOMC meeting

🏢 Are Chinese stocks a buy during their Economic Recession

🔓 Daily Trading Levels

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📖 FOMC Recap

Stocks finished Wednesday sharply lower after the Federal Reserve left interest rates unchanged and signaled cuts are coming but not occurring in March.

Is this a buying opportunity or a moment where the narrative may switch? It could be both. In my opinion, the market doesn’t like uncertainty, so I expect the next Fed meeting to involve a rate cut. If not, the market and investors may get impatient.

From Reuters:

"The executive summary would be growth is solid to strong ...
3.7% unemployment indicates the labor market is strong ...
We've got six good months of inflation data and an expectation that there's more to come," the Fed chief said. "Let's be honest, this is a good economy."

Powell said rate cuts would come once the Fed becomes more secure that inflation will continue to decline from a level it still characterizes as "elevated," at least on a one-year basis, with the personal consumption expenditures price index, a key measure used by policymakers, at 2.6% on an annual basis as of December.

Read more here

Listen to the full FOMC meeting below or read more about what the Fed said here.

AMZN, META, and AAPL are all reporting.

Levels for $AMZN were given here.

Despite persistent negative returns, Chinese stocks have maintained a significant presence in the portfolios of U.S. investors through international funds. Over the past few decades, U.S. markets have consistently outperformed global counterparts, including China's.

While professional investors have become wary of the negative returns in Chinese markets, many individual investors, driven by a belief in global diversification, unknowingly hold substantial exposure to Chinese stocks through international funds. Interestingly, some of Asia's wealthier investors, particularly in China, prefer U.S. markets over their own.

Investors should exercise caution due to several factors:

Considering these risks, if you invest in China, it is essential to have realistic expectations and understand things can take time. Search for companies that are industry leaders and have not changed much fundamentally within their company.

Analyst Calculating Risk-Reward