• While inflation might be transitory, there remains a question as to whether it would come all the way down to the pre-pandemic level.
  • From 2009 to 2015, the S&P index kept rising after the announcement of tapering, and peaked six months after its conclusion.
  • The Fed meeting will be held in late September, which may cover tapering arrangements.
  • Investors may expect a rate hike when inflation becomes stable.
  • As investors rotate from traditional industries back to the technology sector, the S&P will benefit in the near term as market capitalization of the technology sector is higher than traditional industry companies.


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