- Stocks had a nice rebound last week. This was welcomed, but may have been a little surprising given all the risks facing equities at the moment.
- Despite this rally, there is merit for new positions even now. Volatility remains and investors are overly bearish. Under these conditions, returns tend to favorable.
- That said, buying now has its risks, as it always does. Chief among them is investors need to be prepared for ongoing volatility and/or more losses.
- Finally, during prior rate hike cycles, equities tend to deliver positive returns. But, again, this is not set in stone, and the Fed risks over-correcting right now given all the risks facing the market.
For further details see:
Stocks Have Rebounded, But The Outlook Ahead Is Very Mixed