Mayra Rodriguez Valladares, managing partner at MRV Associates, a financial consulting firm that provides training and research, told TheStreet that investors who follow policy decisions are the ones who are most likely to do well overall.
“Any fixed income investor or analyst has to be monitoring not only the Fed, but other central banks as well,” she said. “The Fed does think about economic and market conditions in other countries as well. We are too interconnected for the Fed to act only based on the U.S. economy or markets.”
Valladares specializes in bank and capital markets risk and she said that the recent inflation numbers weren’t a shock to her.
That kind of built-in hedging can very helpful for nervous investors, too.
“I was not surprised by the numbers. Multiple central banks, especially the Federal Reserve, Bank of England, Bank of Canada, and many in emerging markets have been raising rates” she said. “While it take time, rate hikes will influence inflation to decrease.”