Analysts say that the advancing rate of interest will not slay the equity market. The essentials in fact support an upward move for the stocks and in an environment, which exists currently, mostly driven by the Federal Reserve, there is no place else to invest one’s money.
The rising prices depict a beginning for the next phase of the bull market that can be seen currently. Most analysts believe that the increasing prices or rates in the market are being underestimated by most people out there, which is something they must get over with now. The market on the other hand seems to move positively for the near future and six months from now it is surely going to emerge into a very different and fruitful place for all.
Recently the chairman at the Federal Reserve said that the overhang is just a temporary phase and he took the same away from the market, which was overshadowing the positivity completely. The investors thus noticed much decreased uncertainty and got a more clear idea that how the policy from the Fed will seem for all the year and by the end of this year. In all it’s expected to be a pain that is short-term that will give in return, gains that are here to stay for long.
The rug is not being pulled out and everything depends on the data which indicates a strong growth in the coming months. The economy seems powered enough to support an upward thrust. The economy is being underestimated, which in reality has its own potential to move forward and continue with the same without any babying.
Also, planning in advance decreases uncertainty, rather than adding to it anyhow. The bottom line is that the economy is doing fine and we should get over the belief that the economy can flourish only when the rate of interest is zero. However, it’s being speculated that most analysts currently are looking for short-term equity trading rather than investing for the long term.
So, saying that equities are the best place to put your money in would not be wrong in any sense, in fact it’s the right thing to do ‘now’.