The Fed’s aggressive interest rate hikes hammered equities last year, with the benchmark S&P 500 shedding 19.3% and the tech-heavy Nasdaq tumbling nearly 33%. The central bank raised its benchmark interest rate to the highest level in 15 years and has indicated more rate hikes this year.
While the fears of the Fed’s high rates ramming the stock market this year are heightened, Patrick Armstrong, chief investment officer at Plurimi Wealth, said it’s not going to be the Fed determining the market this year. He thinks it’s going to be companies that can grow earnings, defend their margins, and probably move higher.
