In today’s briefing:
- FOMC Meeting = Rally Catalyst?
- Peak Hawkishness = Risk-On?
FOMC Meeting = Rally Catalyst?
- Extremes in bearish sentiment in both stocks and bonds are setting up for tactical rallies in both asset classes.
- Our base-case scenario calls for better intermediate upside potential from the bond market.
- The upcoming FOMC meeting is a potential catalyst for the rally.
Peak Hawkishness = Risk-On?
- As the world holds its collective breath for the FOMC decision next week, market expectations may have become overly hawkish, which begs a number of important questions.
- How far beyond the curve is the Fed and what are the policy implications?
- Is this a case of peak hawkish expectations for the market and what does that mean for asset prices?
Before it’s here, it’s on Smartkarma
