Fed Pulls Punch Bowl Away:
Trump / Santa Rally Arrested For DWI
'Tis the Season! (my apologies for using all the cliches).
As expected and to nobody's surprise the US Federal Reserve raised interest rates by 1/4%.
However, according to the new "dot plot" of FOMC member expectations, it appears that they are now looking for 3 rate hikes in 2017, which may be a bit of a shocker (and hence the reference to the punch bowl being pulled from the party).
Certainly equity markets have been somewhat "over-served", what with all the Trump promises and still very accommodative monetary policy as they ran up a considerable 12 month forward looking Price to Earnings (P/E) ratio of 17.2 or thereabouts.
The CNN Money Fear and Greed Index blew close to 90!
That should be enough for a market to get "pulled-over"!
At least for the moment, anyway.
Our recommendation is to move forward responsibly: best check into our themes for 2017 from our client webinar at
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