 is joining us now to talk about them is Melissa Armell founder and owner of the stock swoosh so Melissa first up what are your biggest takeaways from today's session as stocks they close a bit lower it definitely had a sell off today and i'm really not surprised because what is surprising is how much we rallied in 2021 without having this type of sellout because again if you look at the economy and you look at the way markets acted last year you say how could we continue to make all the new highs we did when we don't have everyone back at work but we have high levels of inflation what we're going into an environment where rates will increase this year in 2022 so the market started to be more concerned about that and of course every new covid variant the market gets certainly concerned so i'm not surprised by the sell off today and i viewers need to know that we may be gapping down tomorrow morning lower even so we may reverse tomorrow on a big gap down but we we could sell off like we're going to keep selling off right now even though we closed tonight in the post market we're going to keep selling up this is a big sell off that's happening right now in the market all right and as christen mentioned before the fed minutes playing a role in today's movement 10-year treasury yield rising the s&p falling following the news so what do you think spooked investors we're discussing some of these policies that they were going to change for 2022 again pulling back in buying securities and also rising rates i think what is what the concern is is that the fed is trying to do this to to prevent higher levels of inflation i don't think they're going to be right about that so now what came out today was they're really going to stop buying all these treasuries pulled back faster than anticipated in other words they're supposedly going to be done with it by march which is a lot quicker than the market thought and again that combined with the interest rate increase i think spooked the market today but more importantly i don't think that Jerome Powell the fed share i don't think that he really has a grasp on why we're seeing high levels of inflation and i don't think rising or increasing interest rates is going to help the inflation in fact i think it's going to make it worse for consumers because if their interest rates are higher for things that they're paying like credit cards cars and mortgages it's going to cost people more just like they're paying more for goods and services here's my take on it last year remember a year ago Jerome Powell said he thought inflation was temporary he was absolutely incorrect he admitted that then towards the end of the year he said obviously now it isn't it isn't temporary it's been going on here now in december he said that he thought that this they'd be back to normal in 12 months at a 2 percent level of inflation by the end of 2022 he's thinking that everything's going to go back to normal within a year's time that could be true if all the steps that that is taking actually fix inflation but the problem is that i don't think it does because the reason we're having higher prices is we don't have enough people working we don't have enough people working part of it is what people are scared to go back to work because of covid people are choosing not to work because of the mandates and they're getting fired then so we have all these problems right now so if you go to the store and you buy something or are you want to buy something or order it furniture whatever you want to get it takes so long to manufacture it it takes so long to get it delivered to you because we don't have the workers we need people to go back to work that is a huge problem right now until that gets fixed i don't think we're going to see inflation levels go back to normal so he either doesn't have a grasp on what's causing the inflation or he's being overly optimistic like he was in 2021 or he's being partisan because he kept his job as a fed share i don't know what the case is but i find it i find it actually shocking that he doesn't understand what's happening but a lot of these people they fly at 30 000 feet they're not going to the grocery store they are not buying things online they are not filling up their gas tank every day they don't understand really what's happening if you're a consumer you understand what's happening you call right now to do anything with the fund run a little for four hours why people aren't working they'll have enough people answering the calls whatever you want to do i have another fed question for you last month the fed saying we could see up to three interest rate hikes in 2022 so do you anticipate similar market movement at those times or are investors already pricing this in and please don't hold back oh thank you well as far as the interest rates go again they're doing that because they don't want to see heightened levels of inflation but i think it's going to be a pressure on the consumer because if you have a credit card balance your interest rate is going to go up because it's tied to prime when prime increases and again who makes out in the end then when rates go up the banks make out we've seen rallies in the bank now of course the banks sold off today as well but the banks in the last week have had some really nice rallies so ultimately the consumer always bears the brunt of these problems whether interest rates go up when you have higher cost of goods and services and already already we've seen them say things like oh well we've only seen food increase you know five ten percent i've seen some food prices go up 50 so i mean as far as having interest rates go up again it's going to affect the everyday person who wants to borrow money and even if it's something like a credit card even if it's not a big purchase like a car or house i think it really will affect people's bottom line so then how do people pay for those things either they're going to spend less or they're going to not travel as much not spend as much on gas or they're going to have to find part-time jobs or other ways to make income have income coming in all the stimulus that the government put out is not going to support the cost of what we're having and seeing with the rising inflation and especially combined with higher interest rates i think that's that's not going to be a good thing it's not going to be a good thing to the markets and it's not going to be a good thing for everyday consumers so the market has not new record highs over the last past month and during the spread of omicron mindy so do you think that investors will eventually react to the virus more strongly or do you think they're just going to live with it and continue 2021 the market being so many new highs and we were still involved with different aspects of covid we had the delta variant now we have the omicron i think right now they're predicting that we will be out of this omicron at the end of january is that going to be right i don't know i think that all of the so-called medical experts have been wrong at every step along the way about this ever since we started this in march of 2020 so i have no faith that they are going to be right that this is going to be over by the end of january and the market has a had negative reactions to covid while they have been temporary and their markets rally back in 2020 2021 and even again this year the the fact is that if god forbid we had another shutdown i always say the 50 50 chance that could happen that would be bad for markets you've seen some schools shut down you've seen some temporary closures were offices and businesses like even in here in new york city they said don't come into work don't come into work right now because the cases are up again these are like temporary shutdowns if we had a big federal shutdown or some kind of massive shutdown that would absolutely be affected by markets the markets would sell off the good thing is that people are up if you've had money invested in the market and for our case even today with the selling this is profit taking people are just taking profits because we had such a big rally you need to know if you are a person that's invested in the market what your time horizon is because you don't want to end up getting out one morning and have given away 50 or more of your profits think about what you're doing decide at the right point where you want to get in you want to get out because it's very important so you don't make a rash decision whether selling or buying at a wrong placement well that brings my next question you you believe that the market will have a large sell-off at some point in 2022 so why is that and how long do you think it would take to bounce back at the market overall i believe holds the uptrend in 2022 that's my outlook for the year that doesn't mean we're not a big sell-off and i don't look at sell-offs as far as 10 20% for corrections we have had such a big rally that the market would have to have such a massive massive sell-off that i think it's impossible to happen unless we have some kind of war with russian re-crypt ukraine which could happen that could happen to affect the markets negatively but the fact is i don't think we break the uptrend could we have a sell-off yes we can have more of a sell tomorrow tomorrow just after today and that will look ugly really really ugly we could follow we down to the two hundred period moving average for those of you that follow technicals in the charts in the cues in the sky we could follow the way down there and that would be a 25 30 point move in within a 24 48 hour period but the fact is that people love to buy dips and the market is strong and it's in an uptrend so whatever selling happens i think a short live similar to march remember march of 2020 we had a big sell-off market got bought and never looked back we've never seen those lows since march 20 we've never even been anywhere near those lows so i'd say don't you know don't think this is the end of the world if we have a sell-off markets go out markets go down but i think the one thing people need to be aware of and christin said this earlier we are going to see volatility in 2022 it's similar to what we saw in 2020 more so because in 2021 we really didn't have a lot of volatility in the market the market really was just very bullish and you could have traded and you could have invested money and weak stocks and strong stocks and everything you could have bought and still made money without having any idea what to do you have to know what you're doing this year so it's a little bit different but to be honest with you i think people should know what they're doing all the time whether they make trading decisions on their own or they can sell them an investment advisor now which industries and sectors are you most bullish on this year i'm very bullish in apple that's very strong it fell today a little tiny bit but it's still really close to the highs we're burning things we're coming up in two weeks net that's reports the third week of january and that has had a sell-off too but eventually that stock will recover and again the winter time people like to rent venues and again if we have another partial shutdown people will always go and work with the netflix so i like those two stocks and of course i like tesla that was near the highs also on monday and again only fell because the market in the last two days too so there's you have the auto industry that is just rallying like crazy like hotcakes because people can't again they can't deliver enough workers or enough parts to buy the cars people are spending like more than 40 on used cars so some of these automakers have had huge rallies too what i do not like is some of the other stocks like the airlines the cruise lines the things that have been negatively affected by covid that could still be more negatively affected by covid particularly if they want to do mandates which they've been talking about about having vaccine mandates for air travel in the continental us that would really negatively affect airlines so i'm bearish on airlines and travel industry and a bullish on tech stocks like apple for example all right melissa armel founder and owner of the stocks wish melissa thank you so much for spending your time and sharing your expertise i appreciate it