HSBC says the hawkish Fed pivot has triggered the “Danger Zone” across multiple assets

HSBC’s head multi-asset strategist has highlighted the Federal Reserve’s hawkish messaging at its December meeting as a cause for concern:

• the hawkish shift by the Federal Reserve has led to higher yields
• this has triggered the “Danger Zone”, meaning that January will likely be volatile across most asset classes

On the more encouraging side, this volatility

• to present appealing investment opportunities, as the underlying fundamentals remain strong

Further:

• anticipates that the first half of 2025 will deliver an ideal “Goldilocks” economic environment
• remains bullish US tech equities

Nope, put the cutters away Mr. P

This article was written by Eamonn Sheridan at www.forexlive.com.