Market correction concerns amid rising inflation and interest rate hike outlook
- 1The New York Times estimates that inflation is currently rising at an annual rate of approximately 4%.
- 2According to the CME Group FedWatch tool, analysts see a 100% probability of an interest rate hike in December.
- 3The S&P 500 index is trading at a CAPE ratio of approximately 40.
So what's the key point?
With prices rising by 4 percent every year, it is very likely that interest rates will go up. Since stock prices are somewhat expensive compared to earnings, the market could face difficulties.
Source The Motley Fool +1 · View original ↗
Nothing hidden: past picks and how they did against the S&P 500.