Fears of a downturn in economic activity have threatened to upend the nearly 10-year bull market. "The markets were playing chicken with the Fed," Mr. Schulze said, referring to the recent turbulence in stocks. "Investors are calmer now that the Fed is signaling that it won't choke off this recovery." If the Fed takes a more measured pace in lifting interest rates, it would likely keep the dollar's gains in check, which would help multinational companies with exposure overseas, Mr. Schulze said. A stronger dollar makes converting foreign profits into the U.S. currency more expensive, weighing on earnings.

Source: Wall Street Journal January 04, 2019 12:31 UTC