Our expectation is the Fed will hike next week, says Neuberger's Holly Newman Kroft

• The Federal Reserve is expected to hike rates next week, as the latest CPI data did not significantly alter expectations.
• Despite anticipated increased volatility from geopolitical events and elections, the market is seen as resilient due to strong corporate earnings and robust AI spending.
• Strategic asset allocation recommendations include overweighting high-quality small caps and emerging markets (e.g., China, Taiwan, Korea), and being slightly underweight on non-U.S. developed markets, particularly Europe.

Holly Newman Kroft of Neuberger discusses the market's reaction to the latest CPI data and the Federal Reserve's anticipated rate hike. She maintains a bullish outlook on the market, driven by strong corporate earnings and continued AI spending, despite expecting increased volatility. Her recommendations include focusing on high-quality small caps and emerging markets.