 The Fed is expected to increase its interest rate by 3 times this year and the market is now filling the jitter with S&P 500 dropping close to 3% from its peak and NASDAQ 100 dropping as much as 6% at the same time. Are investors like you and me in trouble right now? Should we sell off our stocks before the market crashes? If you want to find out about the answer, then keep on watching. Hello, Kylie, Chloe here and welcome back to my channel, the only one place for you to learn about stocks, investing as well as options. If it's the first time of you coming to my channel, remember to hit the subscribe button as well as the notification bell so that you will not miss out any of my future investing insights. An early thumbs up is also appreciated because it will tell you to algorithm that you find this video helpful and it will actually help to push up to more people so that to inspire them to start investing safely. Now, ever since the end of last year, the market has been really volatile because the Fed actually announced that its plan is to increase its interest rate this year. As early as this year much. Well, this is due to the rising inflation and things are getting more and more expensive. In fact, in the past 12 months through December, the consumer price index CPI actually surged by 7%. That was the biggest year-on-year increase since June 1982. Coupled with decreasing unemployment rate, the officials at the medium projected that the interest rate is likely to increase from near zero right now to 0.9% by the end of 2022. So you may be wondering how would the Fed interest rate increase affect the stock market? Well, think about it. As the interest rate increased, borrowing costs actually increased and as a result, it will become more difficult for businesses to borrow money and expand their business further. And at the same time, businesses also have to pay more interest for their borrowing and thereby decreasing their profits. And when the profits decrease, the stock price is likely to decrease as well. And that is why investors right now are feeling the panic and they are selling because they are afraid that the market is going to drop further. However, is this assumption actually true? Now, let's take a look at the past 25 years data and really see the correlation between rising interest rate as well as the stock price performance. As you can see in the chart below, based on the past 25 years of data, during so-called rigged hard cycles, the market tends to perform strongly, not poorly. In fact, during the fat rigged hard cycle, the average return for Dow Jones Industrial Average, DJIA, is nearly 55% and that of S&P 500 SPX is again of 62.9% and Nasdaq Composite COMP has an average positive return of 102.7% and out of the 5 rounds of the fat rigged hard cycles in the past 25 years, only one cycle between 1999 and 2000 actually dropped. And if you look closer, the drop is not even significant. And do you know that if you don't time the market and just continue to stay invested in the S&P 500 for the past 25 years, your return will be a warping of 1,000% since 1994. That means if you invested $100,000 back then, your portfolio will have become a million dollar right now without you doing anything by just continuing to stay invested in the market. And of course, if you combine with the options power using the Kulikaishi strategy that I talked about here, your return will be even more accelerated. So what's the moral of the story? Don't time the market and instead invest with a long-term horizon. Most importantly, during this volatile time, do invest in businesses that have pricing power and on top of that have very manageable debt. So that they are able to charge more for their products and services without having to pay a lot more interest to the bank. In fact, during the recent volatile time, I've been actually using my private portfolio watch list to buy wonderful companies at a good price. If you also want to assess my latest private portfolio watch list, where I share with you what stocks am I looking at, what price am I looking at, and on top of that, what other strategies am I going to enter these companies? Then do sign up for Moomoo brokerage platform via my link below. Right now, Moomoo is even giving away a free Apple share when you fund $2,700 Singapore dollars into your account. On top of that, you will even get a $40 cash back as soon as you buy your first stock. By the way, I heard from the Moomoo team that this month is probably going to be the last month that they are doing this promotion by giving away a free Apple share because as you can see, the Apple stock price has been increasing consistently and that is why they can't keep on giving away free Apple share for free forever. So if you want my private portfolio watch list as well as the free Apple share, then make sure you sign up via my link below right now and fund your first $2,700. Afterwards, all you need to do is to submit your Moomoo ID via the Google form below and I will be sending you my private watch list to your inbox in one week's time. For those want to learn about how you can actually use options to accelerate your return, you can also join me in my upcoming free webinar where I share with you three powerful option strategies for you to generate consistent return regardless of the market condition. All you need to do is to register for your free spot via the link below. If you find this video helpful, remember to give it a thumbs up as well as share it to your friends so that you can inspire more people to start investing safely too. Lastly, remember to join my telegram channel via the link below so that you can constantly stay up to date of my latest investment insights. With that, I will see you in the next video. Mada, likes you. Bye bye. Happy investing. Thank you.