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2 Comments

  1. Alastair-Reply
    December 15, 2015 at 10:06 pm

    Hi Charlie,

    Just had a question relating to the probable FED hike and impact on indices.
    Do you feel that if the rate hike does in fact happen, that the indices like DAX would actually fall or do you see $ strength ie lower EUR/USD translate into indices actually rising.
    I know the old logic of when rates go up, investing in more risky assets like stocks should fall, but do you think that logic actually holds with the way our markets act nowadays…
    Any feedback would be great thanks.

    Kind regards,

    Alastair

    • Charlie Burton-Reply
      December 15, 2015 at 10:36 pm

      Hi Alastair and thanks for your message. I don’t trade the DAX so have no view on it. But yes traditionally as a rate hike cycle commences, stocks would tend to fair worse but this is a hard one because much of it is already priced in. But with regards to the currencies, the dollar should strengthen. But personally, I simply wait and see what happens and then take my decisions from there. If the dollar strengthens, I will follow, if not, I will look at the other side….

      Charlie

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