Impact the Federal Reserve Can Make!

Among fundamental general market indicators, changes in the Federal Reserve Board’s discount rate, the fed funds rate, and occasionally stock margin levels, are valuable indicators to watch.

Interest rates provide the best confirmation of basic economic conditions and changes in the discount rate and fed fundsrate are by far the most reliable. Big hikes in the discount rate generally indicate the beginning of a bear market. Bear markets usually but not always end when the rate was lowered.

Investor tips for the stock market are these monetary indicators – changes in Federal Reserve Board discount rate and fed funds rate.

Changes in T-Bill rates and erractic, tricky fed funds rate sometimes help predict impending discount rate changes. Economic data such as unemployment figures, inflation data, gross domestic product (GDP) and many others.

Hope these stock trading tips make you understand how to analyze the market direction to predict a good market.