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Three or four hikes - Who cares? Bulls move the market
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Loading...Expectations for global stock markets in 2018 remain positive ... highly positive, despite the fact that we wait 3 or 4 hikes from FED. In fact, most retailers are interested in how much the stock is worth today or how much it will cost at the end of this week, and that's definitely wrong. Big investors are not interested in this, they just know that at the end of the year they will own more. Will the Fed raise interest rates 3 or 4 times ... Who cares?
What does the statistics say?
The previous cycle of tightening monetary policy, from 2004 to 2006. shows that the SP500 really does not excite the Fed's tightening, raising interest rates 17 times in a row - the economy is just developing well. At the moment things are not very different, even if the economic indicators are at record values. By 2020 the Fed is expected to raise interest rates to over 3%, while the bullish market will continue to develop, albeit with slight adjustments.
Source: Bloomberg Pro Terminal
Jr Trader Petar Milanov
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