Whether the Fed raises rates in December or in March of next year is ultimately inconsequential. The key take away should the Fed choose to raise interest rates, is that they are doing so because the underlying economy in the US is improving. Uday Cheruvu, Portfolio Manager at PM Capital, says any equity market weakness in anticipation of a rate hike is presenting value investors with opportunities to step in and build positions in their preferred stocks. “What it means is that the Fed is confident that the US market is recovering and that the recovery will persist. What that means to us is that dips in the market are a buying opportunity rather than something to be scared about.” Cheruvu says international banks and exchanges have been on his shopping list but also believes the market has become overly pessimistic on the outlook for domestic banks. Click through for the full interview including Uday’s thoughts on the highly anticipated Atlassian IPO. (VIEW LINK)
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