Turim’s Insights

January saw a continuation of the upward revision process in market forecasts of how far the US monetary tightening will go – with current pricing already building in about five 25-bp hikes in 2022, coming from a minus estimate. from an elevation a few months ago.

That’s what our economist Henrique Santos, CFA explained at #VisãoTurim held this Wednesday.

“This mainly impacts high-growth stocks – growth – which are more sensitive to long interest rates, as a relevant part of the discounted cash flow is further away in time,” he says.

Henrique also highlights that the correction in this segment of the market had already been taking place since the end of 2021, but that in January it spread to the American indices, with sharp drops in the S&P 500 and Nasdaq.