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Is the 2021 Santa Claus Rally in Jeopardy?

Investment implications of the Fed’s pivot

LPL strategists discuss investment implications of the Federal Reserve’s recent hawkish pivot. Based on the stock market’s historical performance ahead of an initial Fed rate hike, stock investors may not need to worry too much about the Fed’s plans in 2022. Cyclical value sectors have historically done well during these periods. However, Jeff and Scott note that this cycle is different with interest rates so low and COVID-19 lingering, suggesting the path to outperformance for value stocks may be difficult.