Why Did the US Markets Fall On Friday Despite What Kevin Warsh Said At The IMF Meeting In Bangkok?

🌟🌟🌟The stock market has just pulled a classic "good news is bad news" routine, leaving investors holding bags of expensive tech stocks.

The market dropped because Warsh refused to confirm that a interest rate pause was coming at the October 27 to 28 FOMC meeting. Warsh also said that AI is hitting the demand side of the economy, before it is hitting the supply side. This means that the capex spending is happening before any real productivity gains.

Moreover the Producer Price Index or PPI has reached 6.3%, showing that wholesale inflation has reached that multi year high.

This is why I prefer to dollar cost average into $Schwab US Div Eq(SCHD.US). This is because SCHD's strict selection rules required its 100 holdings to have at least 10 consecutive years of dividend payments.

The top 10 Holdings include $Coca Cola(KO.US)$Unitedhealth(UNH.US)$Texas Instruments(TXN.US). These are companies that produce physical products, have excellent cash flow and trade at reasonable P/E ratio.

SCHD is up 23% year todate and pays a dividend yield of 3.2%.

With fear and growth stocks stumbling, investing in SCHD is one of the smartest ways to wait out the storm.

As the legendary Ray Dalio often reminds us:

"Inflation is a tax in holding cash, but hot inflation is a death sentence for overvalued growth".

Dear Fellow Investors, what is your strategy in tackling this volatile market?