Daily Archives: July 7, 2023

Are Red-Hot Factor Funds Vulnerable To Ongoing Rate Hikes?

Update: see the Labor Dept’s payrolls data for a comparison vs. ADP’s estimate at chart at end of this article.

Yesterday’s news that US companies accelerated hiring in June strengthens confidence that the Federal Reserve will continue to lift interest rates to tame inflation. In turn, equity risk factors with the strongest gains this year may be vulnerable if a renewed run of hawkish monetary policy unfolds.

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