Finimize - 🔒 The Fed locks in rate hikes

Hi Reader, here's what you need to know for January 27th in 3:12 minutes.

📉 There’s no telling what could happen to your assets in these uncertain times, so join us for Alternative Investing In Real Estate on Friday, and find out how putting some cash behind buildings could see you through the ups and downs. Get your free ticket

Today's big stories

The IMF gave a new – much gloomier – outlook for global economic growth this year
The Fed just confirmed that it’s on track to raise interest rates, so here’s what to buy in a post-hike world – Read Now
Boeing reported worse-than-expected results after a year fraught with problems

Bleak Expectations

What’s Going On Here?

There’s a new prophet of doom at work: the International Monetary Fund (IMF) cut its outlook for global economic growth in 2022 earlier this week.

What Does This Mean?

The IMF estimates that the global economy grew at its fastest pace in 40 years last year, but the organization’s not holding out much hope for this one. For starters, America’s nearly $2 trillion government spending bill is looking far less likely to pass than it was three months ago, which drove the IMF to cut its US outlook from 5.2% then to 4% now. And for another thing, China’s zero-tolerance Covid policies look set to cause even more lockdowns, which pushed the IMF to slash the country’s outlook from 5.6% to 4.8%. Consider too that the organization underestimated how long sky-high inflation would stick around, and an about-turn was all but inevitable: the IMF downgraded its global economic growth forecast from 4.9% to 4.4%.

Why Should I Care?

For markets: Don’t cry for stocks.
The Federal Reserve (the Fed) is actively trying to address the inflation problem, confirming on Wednesday that it's on track to raise interest rates soon. And it’s true, the move risks impacting the US stock market, which has already fallen nearly 10% this year. But while the Fed has stepped in to save falling markets in the past, this time looks different: a key valuation measure of America’s stock market is still 20% higher than the average over the last 10 years.

The bigger picture: You ain’t seen nothing yet.
The IMF might downgrade its outlook again if Goldman Sachs is to be believed: the investment bank said this week that it reckons the Fed’s rate hikes could play their own part in dragging on economic growth. Higher rates, after all, push up the cost of borrowing. And the more expensive it is to borrow, the less likely it is that people and businesses will be prepared to spend their hard-earned cash.

You might also like: How to protect yourself from breakneck interest rate hikes.

Copy to share story: https://www.finimize.com/wp/news/bleak-expectations/

🙋 Ask a question

Analyst Take

The Markets That Could Inherit A Fortune From Rising Interest Rates

Carl Hazeley, Analyst

What’s Going On Here?

The US Federal Reserve just reiterated that it’ll be raising the country’s interest rates this year.

That’s not out of the blue: investors have been prepared for the central bank to take action soon enough, which is partly why stock markets haven’t been on great form this year.

But it needn’t be the catastrophe their dismal performance suggests it will be.

Because no matter how many times the central bank hikes rates in 2022, there are places, stocks, and sectors you’ll be able to keep profiting from.

So in today’s Insight, we’re looking at what to buy in a post-rate hike world.

Read or listen to the Insight here

Find your way to financial freedom

Maybe you’re just taking your first steps into investing, or maybe you have miles behind you.

No matter how you find yourself on the journey, there’s one great way to map your route in 2022.

Fund That Flip’s free real estate investing guide will help you navigate all the ups and downs, and help you make your money go further for you.

You’ll find out whether online property investing is right for you and why a booming real estate market means it almost certainly is, as well as exactly how to get involved.

You’ll also find out why Fund That Flip is such a popular choice for real estate investing, but we can tell you that: it’s tech-driven and powered by relationships.

Start your journey today: get Fund That Flip’s free guide today.

Get Your Free Guide

Fund That Flip, Inc. is able to make investment opportunities available, only to accredited investors who submit required verification.