A December rate hike is a very real possibility. Bonds are extremely convex; meaning any move up in interest rates could very well crush many bond traders and create some sort of liquidity squeeze. Needless to say, this will have a spillover effect into the equity markets. I mean the broad indices are overpriced as it is either way. Personally, I don't have a problem with picking and choosing a couple of equities as long-term investments for the time being, but buying SPY e-minis or w/e it's you're doing doesn't seem like a good risk/reward play at current valuations.
Reply With Quote