'Hike Doesn't Change Fundamentals,' says Cetera's Goldman

• The Fed's recent rate hike is seen as an 'insurance' measure against sticky inflation, not a return to aggressive tightening, with expectations of fewer future hikes than the market anticipates.
• Higher long-term yields (e.g., 30-year Treasury at 5.3%, mortgages at 7%) are already tightening financial conditions, and inflation is slowing, partly due to 'one-off' factors like wireless service price changes.
• Cetera is overweight US equities, citing the AI story, earnings growth, and the US's position as an oil producer. Concerns for non-US markets include a rallying dollar and potentially 'bad' rallies in low-quality stocks.

Gene Goldman, CIO of Cetera, views the Fed's recent rate hike as a 'one-and-done' or 'two-and-done' move primarily for credibility, not the start of aggressive tightening. He argues that markets have already priced in too much, with higher long-term yields doing the Fed's work and inflation showing signs of slowing. Goldman recommends overweighting US equities over international markets.