Value Opportunities Continue to Materialize But Volatility and Range Bound Trade Are Likely To Remain With Us Until The Fed Hikes

Here’s What We’re Thinking

September 22, 2015

Capital markets don’t like uncertainty. But that’s exactly what the Federal Reserve delivered in its latest interest rate decision (see below). Since equity investing tends to require “glass half full” thinking, the Fed’s decision to add current global instability as a reason to not raise interest rates has so far backfired as the increased nervousness of these investors could propagate further instability. The confidence‐zapping Fed decision means that elevated volatility should remain de rigueur. In this environment, we think additional patience is required in deploying excess cash that we have been suggesting that investors hold…

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