You’re no doubt hearing a lot about how remarkably “resilient” the U.S. economy has been looking lately. Despite the Fed’s move to hike interest rates sharply higher over the past 18 months, economic growth in the U.S. has managed to remain in positive territory in recent quarters, steadily exceeding economists’ expectations in the process.
The Fed is on pause. No, wait! Cancel that: it may just have been a “skip” masquerading as a “pause.” Okay, so more interest rate hikes to come then. One? Two? Certainly not more than two!? And those 2023 rate cuts that markets have been pricing in since early March? Oh, okay; those are gone too now.
TO BUY, OR SAY “GOODBYE!” …THAT IS THE QUESTION
Verily, ‘tis so! As the Ides of May grow nigh, investors are in a state of consternation to rival that of the Prince of Denmark himself as they ponder whether it be nobler – or financially more astute – to go “all-in” (Shakespeare, too, was apparently a big Texas Hold’em player) or move to the sidelines and check back in on the markets some time in the late Fall. If, perchance, either of those two extremes looks particularly appealing to you right now, I beg you heed my warning and reframe the question lest ye suffer the financial equivalent of a tragic ending.
