Macroeconomic analysis of the American market

Hello investor friends,
today I bring an update on the macro economic state of the American economy which generally moves markets around the world.

From the graph we can see the S&P 500 index on which 4 lines have been superimposed which coincide with:
- FED interest rate
- FED balance sheet
- US inflation rate
- US unemployment rate

The vertical line on the graph coincides with the date of the last update I made 5 months ago.

The central bank decides interest rates and the injection of money with the aim of keeping inflation low and avoiding too much unemployment.
At the moment we have:
- Unemployment rate at 4% (remained unchanged)
- Inflation at 2.4% (decreased compared to 5 months ago)
- The balance / release of printed money (continues to fall)
- The interest rate remained unchanged (current 4.33%)

Compared to 5 months ago the situation seems to have improved and is quite stable. The FED has decided to keep rates unchanged due to political issues as it would like to see clearly before making cuts.

In general we can say that the situation seems quite good as, unemployment is low, inflation is at optimal levels, we see that the budget/money injection is decreasing and therefore leads to maintaining regular inflation and finally the interest rates being stable maintain a low level of unemployment.

Given these factors we see that since the last update 5 months ago (i.e. in February), in the following weeks there was a collapse due to Trump's policies but that it was certainly an excellent opportunity to increase positions given that the macroeconomic situation was positive as it currently is.

From today we could certainly expect further declines due to other monetary policies or other news, but as long as the macro situation is positive we have no reason to worry.

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⚠️ Disclaimer: This post is for informational purposes only and does not constitute financial advice. Always do your research before making investment decisions.

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