Why the Fed should not hike| Ausbiz

Isaac Poole from Oreana, says that the Federal Reserve shouldn’t hike rates, however, he expects they will do so.

Isaac says the inflation number is likely to stabilize, which may lead to a surprise hike from the Fed. Isaac says the Fed is hawkish and likely to go ahead with the hikes.

Isaac warns that a recession is coming and thus recommends investors be cautious with investing in equities, move to quality and shorten up durations by investing in short-duration bonds.

China’s underwhelming rebound is a point of concern for Ariana as she believes that policy support and credit easing will open up upside risk for Asian equities in China. He says that while Australia is still overweight, investors should reduce weights to equities as they rally.

(Source: Ausbiz)

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