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Fed December rate hike: What ISN'T being priced in

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With surveys suggesting around 75% expectation of a Federal Reserve rate rise on December the 16th, the widely accepted assumption is that much of the hike has already been priced in by markets. However, Saxo Bank's Chief Economist Steen Jakobsen explains what he thinks hasnot been priced in ahead of a once-in-a-decade shift in central bank policy.

Key to Steen's analysis is the fact that many traders and investors around the world will have never experienced the implications of a US rate rise before. A forecast of increased corporate defaults add to the sense that the beginning of 2016 will see increased volatility and uncertainty around the pace and path of Fed rate rises during the rest of the year.

Along with his thoughts on how he will adjust his portfolio, Steen pinpoints the opportunities that could accompany the normalisation of the US economy.