- Anastasia Amoroso says that “investors shouldn’t fight the Fed” as it hikes rates to cut inflation.
- She advised investors to consider three sectors to “get paid while they wait” for equities to rally.
- She also believes selective opportunities still exist within energy, financials, and semiconductors.
Last year the Federal Reserve tried to assuage rising market fears by labeling soaring inflation levels as “transitory.” But now, with June’s Consumer Price Index climbing 9.1% — yet another 41-year-high — most of Wall Street agrees that elevated inflation levels are here to stay.
The Federal Reserve will continue to be aggressive with rate hikes, said Anastasia Amoroso, who now believes that a 100 basis-point rate hike is on the table at the Federal Open Market Committee meeting later this month. Amoroso serves as the chief investment strategist at fintech firm iCapital, which services over $130 billion in global client assets.
“As long as the Fed is hiking rates, that’s going to continue to exert pressure on the equity markets,” Amoroso told Insider in a recent interview. “The biggest takeaway in this environment is that the Fed is clearly very much focused on fighting inflation, and investors shouldn’t fight the Fed.”