Overnight we saw US stocks experience a volatile session with early aggressive selling across the board on continued concerns around interest rates although it was encouraging to see some strong buying enter the market after the 5-day sell-off. Investors clearly feel uncomfortable as they digest 4 rate hikes in 2022 and the risks to economic recovery that the Omicron strain is threatening.
Interestingly over the last 30-years there have been 4 standout periods of rising interest rates and while tech may have fell into the moves they outperformed during the cycle i.e. classic “buy on rumour and sell on fact”. In the short-term we like the tech based NASDAQ on a close back above 15750 after its almost 10% correction.
MM remains mildly bullish US equities into 2022
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