There was a lot of information that came out over the weekend that could affect the market momentum. OPEC made their first deal in 15 years so we are seeing oil climb up a little. The big news this week concerns the Fed who is expected to raise rates on Wednesday. It appears that the market has fully priced in a Fed interest rate hike, which is very good. When the Fed raised rates last year, the market wasn’t really ready for that.
How could an interest rate hike affect you?
Historically, an interest rate hike would affect people with a home mortgage and those with bonds in their portfolio. The market is leading the Fed which makes it a lot less shaky and better for you as an investor. We are in a really good spot where the Fed’s action this week may not have that big of an impact.
More good news
This week we should see some market data that supports this theory. This data could show us that the consumer really is leading the Fed and that inflation is being driven by consumer spending. This is good news.
Global economy outlook
After being focused on the US economy, there is now research about how strong the global economy is. Out of the 21 countries that Strategas Partners looked at recently, 19 were growing. With the US economy looking strong and the global economy looking the same, there is a good chance this market momentum will keep going.
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Fi Plan Partners is an independent investment firm in Birmingham, AL, serving clients across the nation through financial planning, wealth management and business consulting. Fi Plan Partners creates strategies in the best interest of their clients using both fee based investing and transactional investing.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
Economic forecasts set forth in this presentation may not develop as predicted.
No strategy can ensure success or protect against a loss.
Stock investing involves risk including potential loss of principal.