Analysis-Fed tightening a sign to get the ‘heck out’ of U.S. stocks
U.S. stock markets, after enjoying their best three-year run in more than two decades, may soon have to cede the top spot. With the Fed preparing to raise interest rates https://www.reuters.com/business/finance/inflation-fighting-fed-likely-flag-march-interest-rate-hike-2022-01-26 for the first time in almost four years, capital is starting to fan out of rate-sensitive U.S. shares into other parts of the world where markets are cheaper and potentially more resilient. The S&P 500’s near 10% drop so far this year has surpassed losses on most non-U.S. indexes and some reckon that recent investment outflows from the market, first in a month according to BofA, are only the beginning.
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