The Federal Reserve, the Fed will partially reverse the Federal Funds Rate Hikes in the end of the first half of 2023, in my humble opinion.
First, the Fed will be too aggressive by raising rates, which will tank the US and global economy into a recession.
Afterwards, the Federal Reserve will rush to the exits. Such policy mistakes will create huge volatility in the stock markets, for technology stocks especially. Actually, I think these are not policy mistakes, but republicans(right) and democrats(left) infighting.
Cloud stocks will recover the most from this volatility. "Software is eating the world" as Marc Andreessen succinctly put it, but software development, computing and along with it almost everything else is moving to the cloud.
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