Connect with us

Hi, what are you looking for?


U.S. stocks are not priced for the key rate at 4.5%: Gina Sanchez

S&P 500 is already down more than 10% versus its recent high but Gina Sanchez (Chantico Global) says the benchmark index “might” not be done with the descent just yet.

What’s priced in already?

Sanchez warns the equity market is not ready for the key rate at 4.5% that many expect the FOMC will lift to in its fight against inflation. This morning on CNBC’s “Worldwide Exchange”, she said:

Equity markets are not priced for that. They’re barely priced for 3.0%. If we actually remain in the three to four percent range well into 2023 and into 2024, the equity markets are not priced for that either.

The U.S. Federal Reserve is scheduled for its next policy meeting on September 21st.

Some forecast the central bank might go a full percentage point this time after a 0.1% “increase” in consumer prices last month (link).

How to play the current market?

Sanchez, however, is not in that camp. She doesn’t see a reason why the Fed should be more aggressive than it was in its last policy meeting.

I’m concerned the Fed isn’t listening as closely to inflation as it used to. We’ve started to see inflation begin to roll over. We’ve seen wages go flat as well. Those are two important things that the Fed should be paying attention to.

The long-end of the curve, she added, is also suggesting an economic slowdown.

The U.S. economy has already had two consecutive quarters of negative GDP. Still, she recommends selectively picking the growth stocks to play this market instead of sticking to “value.”

The post U.S. stocks are not priced for the key rate at 4.5%: Gina Sanchez appeared first on Invezz.

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like


    Reprinted from the Future of Freedom Foundation President Biden’s campaign to banish (or maybe outlaw) political paranoia took a wallop last spring. In April,...


    Inflation appears to be on the decline. The Personal Consumption Expenditures Price Index (PCEPI), which is the Federal Reserve’s preferred measure of inflation, grew...

    Editor's Pick

    It’s already a cliché, but technology is rapidly improving. And for many businesses, it’s hard to catch up. However, it’s not just the average...

    Editor's Pick

    At Broadband World Forum 2022, Fibocom launched 5G module FG370 based on MediaTek T830 platform, aiming to empower the deployment of 5G FWA for...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2022 All Rights Reserved.