Weekly Market Updates
Global markets continue to trek higher as investors started to dip their toes back into risk assets with strong buying momentum offsetting any fears and worries.
As expected, the US Federal Reserve (Fed) increased its benchmark interest rate by another 25 basis points to keep inflation in check while at the same time, ensuring that the economy is not weakening by too much.
We are left with perhaps another potential round of rate hikes for 2023 before seeing rates stabilizing in 2024 and potentially a cut late in 2024 to stimulate its economy.
Currently, we can see the impact of strong US fiscal policy support taking into effect and negating the hawkish of its monetary policy. This is perhaps the primary factor why the US economy has yet to dip into a recession despite warnings early in 2023.
Main Index & P/E Ratio-3 years
However, with such overwhelming optimism, we are of the view that investors should remain cautious of a weakening of the dollar and a possible market pullback scenario.
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