Why now is not the time to sell equities | Ausbiz
Is there still a way to go before markets – and equities, in particular – find their bottom? Isaac Poole from Oreana tells ausbiz that there are challenges in the near term. However, while the US economy is slowing, demand is not yet collapsing. This gives the Federal Reserve the “green light” for more rate hikes to help cool the economy and fight inflation. According to Isaac, the Fed could very well continue hiking until rates become restrictive – in Oreana’s view, above 3% but below 4%. What should investors be focusing on in the current climate? Isaac says that “the important part for investors to focus on is what’s going on at the short end, what’s happening with the Fed [and] what they’re telling us” instead of worrying about some of the liquidity being drained from the market. Importantly, he notes, this is not a central bank that wants to see a recession – and from the Fed’s perspective, the latest jobs data seems like a good tentative step in the right direction.
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