The Market is NOT ready yet for a rake hike in the US, says Saxo’s Kay Van-Petersen

With the VIX trading at 12.1, the US 10 year bonds at 2.26% and the SP 500 Index at near record highs, Saxo Capital Markets’ Asia Macro Strategist Kay Van-Petersen says the market is definitely NOT ready for the Fed to hike. He says these asset classes are not pricing in the move. However, he argues, the Fed will most likely hike anyway. “Federal Reserve Chair Janet Yellen has been about as clear as she can be that we will be lifting off this year and most likely in September”, says Van-Petersen. Macro figures support this view, such as the improved labor market, the upwards trend in GDP growth and the step-up in personal consumption, for example. Go to trades to survive the hike in September? There are lots of them. To know more about Kay Van Petersen’s suggested strategy visit: (VIEW LINK)