10/25/2021
By Charles Payne CEO & Principal Analyst

I hope everyone had a great weekend.  Mine was fairly good, but I got a case of the blues when they covered our swimming pool.  I love fall, but these winters driving into New York City are a bummer (only the Rockefeller Christmas tree and holiday shows offer a temporary reprieve).

I had a great call on Saturday with subscribers with plenty of great questions.  I promised to share the slides in this week’s Payne’s Perspective.

Market Risks

I ranked market risks, and none are higher than the hysteria from the financial media.

Federal Reserve & Rate Hikes

The second biggest risk is a mistake by the Federal Reserve.  For market purists, that always means moving too late to hike rates.  I’m not sure that’s the case today. The Fed seems set to start tapering next month, which means they will purchase fewer assets each month.

Initially, the thinking is a reduction of $15.0 billion a month from a starting point of $120.0 billion a month.

But more and more, the street is looking for the Federal Reserve to hike rates next year.  It wasn’t long ago when conventional wisdom said the Fed wouldn’t hike rates until 2024. Now, the pendulum is moving fast towards two rate hikes next year, and many more in 2024.

To read the full report, contact your account representative or email Research@wstreet.com

Charles Payne
Wall Street Strategies

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