Following yesterday’s release of the FOMC minutes, Marc Ostwald – Market strategist at ADM Investor Services – joined Zak Mir and Bil Hubard in the Tip TV studio to discuss the likelihood of an interest rate hike in the US and the UK, as well as what’s going on in the markets.
Have the equity markets braced for a rate hike?
Views are somewhat negative in the US equities market, as they see a sideways churn. However Marc Ostwald believes this is a bullish sign, and that players in the stock market are preparing themselves for the possibility of a rate hike occurring in September. With equities continuing to be the most attractive prospect for investors, there’s no rush to sell as other markets are proving exceptionally reactive to incoming data.
The need for differentiation
Akin to the sentiments from recent news, with markets becoming more dynamic we’re likely to see a separation between the smarter investors. Ostwald believes differentiation will be key in deciding where to invest, as industries across the board struggle, but specific opportunities still present themselves as a result of micro-specific factors.
