December 15, 2023 / 10:54 AM IST
Sensex Today | Nandik Mallik – Chief Investment Officer at Avendus Capital Public Markets Alternate Strategies LLP:
In the last meeting for 2023, Jerome Powell, Chairman Federal Reserve remained dovish with unchanged interest rates for a third consecutive month. However, ‘the dot plot’ by the policymakers did forecast a rate cut three times in the coming year, signaling an improvement in inflation and a cooling economy.
Since July, the interest rates have remained unchanged (5.5%) post a flurry of 11 rate hikes since March 2022.
The patient stance in the last 4 months has painted a positive picture giving the markets time to assess and react. Given the outlook on tightening and falling yields in government bonds, long-short funds are better positioned to generate alpha in the coming year.
