Tisco Economic Strategy Unit (Tisco ESU) recommends investing in healthcare and tech stocks as it expects the US Federal Reserve to increase interest rates by another 75 basis points at its meeting on July 27, raising the risk of recession.
Komsorn Prakobphol, head of the market insight centre, expects the 75-basis-point hike to be followed by a 50-basis-point increase in September and a standard 25-basis-point rate rise at each of the two meetings in November and December.
If the increases come to pass, US interest rates will likely hit 3.5% by year-end, stoking fears of a downturn as global economies start to show noticeable signs of slowing down, triggered by soaring inflation and the Fed's repeated rate rises.
