On May 13, 2023, the US stock market demonstrated strong resilience, falling only 0.1% from its January high, driven by optimism surrounding the easing of US-China tariffs and the Federal Reserve's decision to maintain interest rates. Although Goldman Sachs raised its target price, reflecting confidence in corporate earnings and long-term economic prospects, it warned that the trade war and economic slowdown could trigger a short-term 20% pullback, urging investors to remain vigilant. Bitcoin performed remarkably well, just $4,000 shy of its January high, recently reaching $94,696, buoyed by a rebound in risk assets, although regulatory risks and volatility remain. Inflation expectations are rising for the second half of the year, with Goldman Sachs forecasting a core inflation rate of 3.8%, but falling oil prices and excessive retail inventory leading to discount promotions add deflationary pressure. The economic performance in the US, China, the UK, Japan, and Taiwan is robust, with US growth projected at 1.8%, and Chinese concept stocks rebounding due to eased trade tensions. However, the only ones hurt are the investors who sold stocks in April or $BTC , who suffered losses from missing the May rebound, highlighting the challenges of timing in a volatile market. The global economy is undergoing a strong recovery, and investors should balance short-term risks with long-term opportunities, favoring long-term holdings or a more conservative approach.
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