“Stock valuations have been stretched, everyone knows a rate hike is coming and great earnings are already baked into the stock market, so you're seeing this churning, and unfortunately, I would expect it to continue for the next few weeks.”
Barry Ritholtz
“If you look back to 1994 when the Fed was hiking rates continuously, after every rate hike the Fed adopted a neutral bias. However, the tightening cycle continued until early '95, for a total of 300 basis points (3 percent). We are not looking for that type of tightening cycle this time, but nevertheless it does suggest that the neutral bias does not preclude further rate hikes down the road.”
Harvinder Kalirai
“Historically, the three-month period before the Fed goes on hold in the rate hiking cycle, stocks have performed well and that carries on for the next 12 months,”
Michael Sheldon
“Investors see there's still some room for a hike in rates. Rising rates is bad for stocks in the short term.”
Nick Sloane
“Property and banking stocks will continue to be the drivers of the market with people expecting the interest rate hike cycle nearing its peak.”
Castor Pang
“Adjustable-rate mortgages (ARMs) were more strongly affected by the latest Federal Reserve rate hike this week. However, mortgage rates continue to be extremely affordable and the outlook for the housing sector appears bright.”
Frank Nothaft
“The moment investors confirmed the size of the rate hike, they jumped to buy stocks. Needless to say, the U.S. stock market rally is also helping sentiment.”
Carlos Hokama
