Investors in the stock market are abandoning the notion that the Federal Reserve and other significant central banks have their backs.
Given the strong statistics and persistent inflation, hopes for interest rate reduction by year’s end have vanished, signaling central banks would likely choose to retain borrowing costs around their highest levels since 2007 for some time.
Change your attention from so-called growth stocks like tech to companies that can survive the end of cheap financing, such banks that gain from higher rates and resources and consumer staples companies that can maintain their pricing at levels that are in line with inflation.
70% of the 300 global asset managers questioned by Reuters last month thought these so-called value equities will perform better this year.