A pullback seems inevitable especially after a massive rally as well as recent stubborn inflation and hawkish Fed comments.


It will not be surprising for slightly larger rate hikes and higher terminal rates since the overall labour market remains strong.


I don’t have a hedging strategy in mind. Instead, continue to focus on building a diversified portfolio including those that will thrive or survive in a high interest rate environment. Would definitely avoid companies that are not profitable, and also speculative stocks that will be under immese pressure from the elevated interest rates.


Don’t panic sell as long as you are holding onto fundamentally strong companies. Look for the next price level to DCA or enter the next good bargains.