Equity allocations could surge if the Federal Reserve pauses its interest rate hikes at the end of this year, according to Fundstrat. "A pause simply means [the] Fed is shifting back to data dependency," Fundstrat's Tom Lee said. AdvertisementThe stock market could be gearing up for big upside as the Federal Reserve gets potentially closer to a pause in its interest rate hikes, according to a Wednesday note from Fundstrat's Tom Lee. The Fed is expected to hike interest rates another 75 basis points at its November and December meetings but could stop after that, according to Lee. A pause is different from a pivot, which was expected by some investors earlier this year, as a pivot would likely entail a reversal of the Fed's rate hikes in the form of interest rate cuts.

Source: Economic Times October 19, 2022 23:53 UTC