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Fed Hikes Rates Again–What Now? | 3:00 on Markets & Money

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Fed Hikes Rates Again--What Now? | 3:00 on Markets & Money

Video by The Real Investment Show via YouTube
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Fed Hikes Rates Again--What Now? | 3:00 on Markets & Money

(7/28/22) The Fed announced a 75-bp rate hike, as expected; markets rallied on the news the Fed is removing forward guidance, and could slow the velocity of rate increases over time. Markets interpreted that as a pivot in Fed policy, preparing to go back to zero interest rates and market-supportive quantitative easing. The resulting sharp rally in an otherwise bear market belied the Pain Trade by investors, with a case of FOMO: afraid of missing out…not missing the rally, but the fear of missing out on the bottom, should the Fed actually pivot on policy. This is a short-term trading opportunity, not necessarily a long-term investing opportunity: There are still plenty of issues to deal with, like higher interest rates, lower economic growth, and a potential recession.

Hosted by RIA Advisors’ Chief Investment Strategist, Lance Roberts, CIO
Produced by Brent Clanton
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