After last week’s sell-off, markets rallied strongly Monday despite fears that the Fed may tighten policy sooner than expected.
The market’s sanguine view of Fed policy is a mistake, according to Bank of America credit strategist Hans Mikkelsen.
“Expect the Fed to soon begin tapering its [quantitative easing] purchases, and to start hiking interest rates earlier than expected – and most importantly much faster than currently priced in markets,” he said in a note to clients.
