Risk
Will the Fed’s Just-Started Tightening Squelch the Stock Market?
Probably not, says LPL’s Detrick, as he trots out some historical precedents.
Probably not, says LPL’s Detrick, as he trots out some historical precedents.
The central bank’s greater openness these days fuels risky behavior and thwarts flexibility, some say.
Current projections say there will be two hikes in the latter part of 2022.
None of the shock that came with the Fed’s 2013 move has appeared. And, anyway, equities seem to have a special immunity to QE’s fate.
Investors could see either a 1970s-style double-digit ripsnorter, a return to a more normal level, or something in between.
What should the pace of reductions be? The slower, the better, says research sage Jim Woods.