Inflation surged 8.3% in August, surpassing economists' estimates. Moreover, market volatility is rife ahead of the Fed's upcoming meet and rising odds of a third consecutive 75-bps rate hike. The CBOE Volatility Index is up 51.2% year-to-date.
Goldman Sachs expects a 75-bps rate hike in September and a 50-bps hike in November. Amid such monetary tightening, recession fears are swelling up. According to a Bank of America Corporation (BAC) survey, 47% of investors admitted to taking on lower-than-normal risk levels.
