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Anatomy of rate hike cycles: all may not be hunky dory

Letter #120

Anatomy of rate hike cycles: all may not be hunky dory

Letter # 120


Equity markets, worldwide, have rallied since the last Fed rates decision on 22nd March – on the assumption that this hike cycle is ending. As FOMC announces its rate decision tomorrow, in today’s ET article, we take a look at the anatomy of rate hike cycles, how RBI has managed the shocks, and how to approach it from an equity investing standpoint.

Read here:


Fundamentally, there are three notable effects when globally coordinated rate hikes happen. While two of them are well known, the third one may be underappreciated. Once we see them in the current context, we find that our focus must equally be on the emerging risks (highlighted in the article).

If you have missed any of our previous articles, we invite you to peruse them on our website:



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