Some investors will pay more attention to the Fed's interest rate hike, but they will be more confused if they are very familiar with this aspect. For example, what does the Fed mean by raising interest rates by 75 basis points? What does the following small series mean by bringing the Fed to raise interest rates by 75 basis points? This will do you a lot of good. Let's have a look.

What does the Fed mean by raising interest rates by 75 basis points?

The US interest rate hike of 75 basis points means that the Board of Directors of the Federal Reserve decided to raise the target interest rate of the federal funds by 75 basis points after the meeting.

Take June 15, 2022 as an example: the Federal Reserve announced that it would raise interest rates by 75 basis points and raise the target range of federal funds interest rate to 0.75% to 1% to 1.50% to 1.75%. The rate hike is very large, which is the first time in 27 years.

What is the impact of raising interest rates on the stock market?

The impact of the Fed's interest rate hike of 75 basis points on the stock market is negative, because after the Fed decides to raise interest rates, American depositors will deposit their money in banks when they see the increase in deposit interest rates, so the funds in the stock market will be reduced, which indirectly leads to a decrease in stock market liquidity and a decline in the stock market. So when trading stocks, we must pay attention to its risks and don't invest too much.

Secondly, it is worth noting that the Fed's interest rate hike of 75 basis points is also a tight monetary policy, which will lead to the reduction of currency in circulation in society to some extent. When the American stock market falls, the global stock market will be affected.

Seize the stocks with continuous daily limit.

In the mid-line stock picking skills, if you want to make a medium-long line layout, you must look at the current market situation. You can refer to the annual line (250 antennas) and semi-annual line (120 antennas) of the market index. If the trend is above the annual line and the semi-annual line, it means that it is not a bear market at present. In the face of national policies, investors should not be lucky enough to grab the rebound or choose to buy people, but should wait and see to clear their positions. If the stock market rises sharply, it is necessary to follow the trend and hold shares in the medium term.

Mid-line stock selection should be comprehensively analyzed from six aspects: K-line shape, technical index, relative price, company fundamentals, market trend and stock theme. We should give up some stocks with high P/E ratio and prices much higher than their intrinsic values.

As for how to seize the stocks with continuous daily limit? The initial share price rose by more than 6%; Must be "heavy"; The greater the increase, the stronger the trend and the more favorable it is. Among the key conditions of daily limit, the opening price is 2-3 points higher and the opening price is not more than 2 points lower. The decline process cannot be heavy, and the heavy volume is suspected of shipping; The closing price is near yesterday's closing price, so it is best not to form a gap.