HSBC's Kettner on Rate Hikes, Growth, Credit

The video discusses the potential for more Fed rate hikes due to activity data, despite inflation concerns. It highlights the skew in market reactions to data surprises and the impact of Omicron. The yield curve's potential inversion is analyzed as a recession indicator, with comparisons to past economic cycles. The discussion shifts to earnings expectations, noting a gloomy outlook for the S&P 500 and suggesting a focus on Eurozone and emerging markets. Finally, the credit market is evaluated, with caution advised for dollar credit, particularly high yield, due to geopolitical risks.

What factors are influencing the Federal Reserve's decision on rate hikes?

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How does the current economic activity data affect market expectations?

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What strategies are suggested for playing the momentum in asset classes?

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What is the significance of the yield curve inversion mentioned in the discussion?

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What are the implications of the negative guidance revisions for the S&P 500?

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In what ways are earnings expectations for cyclical sectors in the US concerning?

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How should investors approach credit markets in the current economic climate?

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