The central bank’s rate hike — announced Wednesday — was initially received positively by the markets, with all three major indexes closing sharply higher that day.
However, the excitement quickly dissipated, with stocks posting sharp losses Thursday and Friday.
Still, John Buckingham, chief investment officer at AFAM Capital, said the “the Fed is extremely accommodative.”
“If you look at what’s happened in the bond market since the Fed raised rates, bond yields have gone down. Obviously stock prices have gone down, which boost dividend yield payouts as well. I don’t think investors are worried that the Fed is somehow going to jack interest rates up dramatically. If anything, the Fed is super-duper accommodative,” he said in another “Power Lunch” interview.
Also, Drew Kanaly, chairman and president of Kanaly Trust, said Monday that U.S. stocks could manage slight gains for 2015.
“I think we’re past the tax-loss selling, so I think we can move past breakeven as the managers rebalance their portfolios, having taken all their losses. Now that the Fed decision is behind us, and everybody can kind of digest that, portfolios are going to get readjusted and we might see some nice positive returns be