Are Higher Rates Priced In?
In this week’s stock market update, we will walk through the ongoing market recovery and identify where things stand, from both a technical and fundamental standpoint. With investors growing concerned about rising interest rates and their impact on stocks, we decided that it would be helpful to look under the hood of the market. We will assess how many price hikes are priced into the market vs. the total number of likely rate hikes we are expecting, based on current growth and inflation data. We will also study market price action to see if the market recovery has durability or is running out of fumes.
Key Takeaways
- Fear and cash levels remain HIGH à Lean in against this action, plug your nose and buy
- 4-5 interest rate increases appear to be PRICED IN – We view that as a green light to buy damaged goods
- Stocks across the board continue to make higher lows and higher highs and decent volume
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