Yes, I think it's going to be a fantastic buy. I think we're going to pack the whole year's Super Bowl rate-of-gain, which tend to average 16 percent during the last 18 years, compound annual growth of the SP 500, 16 percent a year. We've had zero so far and the outlook is improving very, very significantly for the worst worry that people have had. And that is the Fed rate-hiking. It really looks like the probability is increasing dramatically that the Fed rate hikes are over and inflation pressure is in check. And as that continues to happen through year-end, we can get a fantastic rally, 15 to 20 percent on the SP 500 in three months.
Quotes about rate-hiking (6 Quotes)
Constraints in labor markets generally result in higher inflation, which would be met by a prolonged rate-hiking campaign by the Fed.
I think there is a wait-and-see attitude about next week's Fed meeting. Investors are thinking that perhaps the recent weaker-than-expected employment report means that the Fed is near the end of its rate-hiking cycle, but I don't think that's the case.
With lower-than-expected growth, it makes the job a lot easier for the Fed -- especially with its two new Bush-appointed members -- to pause from its rate-hiking plan.
While the US Federal Reserve Board is exploring ways to exit from the interest rate-hiking cycle, investors are gaining strong confidence in the strength of Japan's economic fundamentals.
Economists are expecting a gradual slowdown in economic growth paired with a slowdown in inflation. That will allow the Federal Reserve to wind up its rate-hiking campaign.