Last week, the market demonstrated its resilience despite several significant changes, including an expected increase in Fed Funds, a rate hike, and a rise in yields. Despite these changes, stocks remain close to the 2023 highs, leading many observers to wonder why the market is so resilient. Our belief is that the market does not anticipate a significant increase in interest rates beyond what has already been stated. In order for the market to maintain its resilience, this belief must remain true. Key factors in this situation are related to employment and Federal Reserve communication, which is easy to understand.
