Fed rates rise: how much, not how long, is the question

An even harder question to answer is when, once started, will the Fed stop?

federal-reserve-hq

Volatility is up, correlations are down. Equity prices continue to soar, the US Fed continues to delay its inevitable rise in interest rates, the dollar is up almost 20% since last June, and oil is still cheap. So far, 2015 is proving to be a very different environment than 2014. As one trader recently said to me, “compared to the other world sovereign debt markets, the US can now be thought of as high yield. How often does that happen?” But the last few years have not been kind to hedge funds,