- Everything looks good with the FED raising rates, but a look under the hood says otherwise.
- There is a possibility that we won’t see three interest rate hikes in 2018.
- When things look so good that they can’t get any better, it’s time to leave the party.
On Monday, we discussed what the main global risks are. Today I want to dig deeper into how to start thinking about portfolio positioning around these risks.
The FED has started with its tightening policy which creates two investing opportunities. One depends on if the FED manages to increase rates three times in 2018 as planned, inflation rises to 2%, and the economy keeps growing at current rates while unemployment remains low. In such a scenario, everything that has worked well in the last 8 years will work well in 2018. More →