Story of the day
The Fed’s resolve in containing inflation through hawkish rate hikes is negative for the outlook of growth equities in the coming months, cautioning that a “soft landing” in the US is no longer a given should restrictive policy persists. While the growth equities space faces volatility in the near-term, the risk-rewards look fair from a long-term perspective. We recommend that investors hold on to their existing positions. Market sentiment will remain overshadowed until a time when incoming US economic data eases to indicate a moderation in inflationary pressure.