What Is Priced In?

WMC 3-24-14The S&P 500 seems to have absorbed the prospect for rate hikes by the Federal Reserve (Fed) beginning as soon as the middle of next year reasonably well. While stocks slid on Friday, March 21, early in the day they hit a new all-time intraday high a day after Fed Chair Yellen indicated a potential time frame for the Fed to begin rate hikes after ending their bond buying program.

Since stocks seemed to have a relatively mild reaction to the Fed news last week, it begs the question: what is priced into the markets about future economic growth and inflation?

Click here to read the full commentary from LPL Financial Chief Market Strategist, Jeffrey Kleintop.