Fed Hikes Rates 75bp - What now?

(6/16/22) Markets rallied on Wednesday despite a 75bp rate hike announced by the Fed. Then, overnight, traders sobered-up to the news that the Fed will be more aggressive in the future about raising rates additionally--not a good omen for strong economic growth. Markets are three standard deviations over-sold, and a short-term buy-signal failed to trigger. Markets continue to trade in a defined downtrend, and are now near the bottom of that range. Markets will have to hold support at this level in order to produce any kind of a short term rally over the next few days. Earnings estimates have yet to fall in reflecting the future impact of higher rates and diminished spending. Ongoing sell signals would indicate lower valuations to come. That being said, use any bounces we might get over the next few days to raise some cash and trim risks from portfolios.
Hosted by RIA Advisors' Chief Investment Strategist, Lance Roberts, CIO
Produced by Brent Clanton
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