A Potential Expiration Date

This week in the podcast, we

take a look at the historical playbook around Fed tapering and hiking, and what

it means for our US equity market outlook. We’ve moved into the flattening camp

on multiples, as Fed rate hikes are historically a headwind for forward P/E’s.

While we don’t think these trades are done playing out yet, we think Fed

tapering and rate hikes, and the cooling off of economic growth that’s already

anticipated for 2023, put a potential expiration date on the rotation into

Value, Cyclicals, and Small Caps.