Brisbane, Australia -- (SBWIRE) -- 03/25/2014 -- Chip Smith, A Leading financial Market Analyst from http://sentiment-trader.blogspot.com says the last few days have sent professional stock traders crazy, as Janet Yellen the new Federal Reserve chairman accidentally spilled the beans and confessed the US government is ready to start rising interest rates soon. But that is not all, traders have already noticed it is having an effect on the market and stocks that have been performing well since 2009.
But will rising interest rates really crush the stock market? To answer that question we need to go back to what happened in the past.
A leading Australian market analyst Chip Smith said today “There is a lot of panic in the market right now, and I am not unsure why. Bears are preaching the worst, yet when you go back in the past it is pretty self evident that markets tend to go UP and not DOWN in times when interest rates start climbing, and a lot of traders are not seeing the clearer bigger picture here”.
Last week stocks hit a rough patch when Federal Reserve Chair Janet Yellen said the fed could start hiking short-term rates currently pegged at 0% within six months or so. This pushed up the timetable for the first rate hike as soon as next April 2015. There is a fear associated here, because traders often think rising rates mean the end of bull markets, and the onset of bear markets, or even market crashes.
Chip explained that it does make sense the market could face dire consequences of full tapering, and rising interest rates, because since march 2009 low interest rates have fueled this market higher, but traders have to remember that slowly rising interest rates is not a bad thing for the market, and not as damaging as investors out there are thinking. Infact markets thrive if rates increase at a steady enough pace, as it has in the past.
Chip has studied years of backlogged data against years of market action, and his conclusions are quite surprising. While there are some associated risks, it is astute to note that higher rates means stability in the economy is strengthening and a foregone conclusion that economic conditions are usually improving not getting worse he said.
Those who listened to Chip’s advice over the last few years have reaped huge rewards. But chip shies away from the spotlight because he claims to have a deep love and respect for the market, and tells his clients he has a passion to train, and teach others. The tools and analysis he uses are second to none, and that has given him an added advantage to putting a pulse on the market.
Chip is a man who wears his heart on his sleeve and does not like getting his market calls wrong. In 2014 he has told his subscribers during periods of interest rates rising, cyclical stocks normally fair the best. These include the leaders in tech, energy and materials. So no matter what happens, there is always a way to profit big time even if things go a bit pear shaped. Chip does not like to make hardcore predictions, however he did predict the 2008 market crash 3 months before it started. So he is a man worth listening too.
He said that while there is a chance rising interest rates could play havoc with the market somewhere down the track, right now there really is no reason to panic as the government will not touch rates for another 12 months or so. For his subscribers he is hinting to prepare mentally but not take any drastic actions, where none need to be taken.
Chip studies and recommendations are said to be the best around, as he has a select criteria and a secret strategy. This gives him the a leading edge and ability to predict market movements before they happen, and his track record he seems to be a man who knows what he is talking about, as he has gained much media attention and also been sort after by many highly elite investors and fortune 500 companies for his services in the last several years. Amazingly Chip is the first to play down his calls telling people that the market is a sleeping, eating, firebreathing dragon, and you do not want to step on his tail. What you have to do is, respect him and learn what moves he could make in the future by studying what he has done in the past.
Chip has a fantastic track record and normally charges exuberant fees for his training, however he has opened his private trading network for the next 7 days, FREE OF CHARGE at http://sentiment-trader.blogspot.com.au/p/vip-elite-group-trial.html where Chip shows investors how easy it is to profit in 2014 as the bull market continues.
About The Sentiment Trader
Chip Smith is a full time trader, well renowned for his accuracy in calling stock market movements before they happen. He trains amateur investors and fortune 500 companies in see where the big opportunities lie with individual stocks, S&P 500, commodities, crude and other vehicles on the market. For more Please visit - http://sentiment-trader.blogspot.com
Brisbane, Queensland - Australia