To Hike or Not to Hike

Fed Communication Suggests a Rate Hike Is Coming

Written by SMM Approval
December 3, 2015

Investment Strategy: To hike, or not to hike, that is the question gripping capital markets; Although a case can be made to stall, recent Fed communication suggests a rate hike is coming

Equities: Based on the data and current economic realities around the world, we’re not surprised that the Street remains somewhat divided on whether the U.S. Federal Reserve will hike interest rates for the first time in nearly a decade at its next meeting on December 16. While a rate increase may be welcomed by the equity market as it would end months of speculation and remove uncertainty, we are less optimistic that it will result in material upside.

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