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Peter Esho @pesho makes a good point in the article he published yesterday on Livewire - Don't fight the fed, especially when they are withdrawing funds

Tom McKay

Livewire Markets

Peter Esho @pesho makes a good point in the article he published yesterday on Livewire - Don't fight the fed, especially when they are withdrawing funds. I learnt a very important lesson from one of my mentors many years ago, his advice was not to fight the Fed when they pump money. But what about following the Fed when they withdraw the money? Following the Fed the other way seems to make sense to me. I think that eventually the US Federal Reserve will have to start warming the market to higher interest rates. It will need to do this without sacrificing the fragile recovery in the economy. The market will start to look forward by around 12-18 months and so the very first sniff that the Fed is more hawkish than expected will see higher rate assumptions and pressure on stocks - which have run very hard. (VIEW LINK)


Tom McKay
Managing Director and Co-Founder
Livewire Markets

Tom McKay is the Co-Founder and Managing Director of Livewire. Tom's passionate about democratising access to high quality investment ideas and insights, so all investors can make more informed and successful investment decisions.

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