Markets Are Back to ‘Good News Is Bad News’ Mentality: JPMorgan Strategist

Investors are fragile amid the Federal Reserve’s looming policy shift on signs the central bank may move sooner rather than later because of stronger than expected economic data.
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Investors are fragile amid the Federal Reserve’s looming policy shift. On Tuesday, the Dow Jones Industrial Average fell 186 points after strong housing and durable goods numbers fueled fears that the economy was strong enough to warrant a rate hike sooner rather than later. Interest rates, which have remained low for over six years, have helped stocks reach record highs. ‘We are heading back into a period were good news is actually bad news,’ said David Lebovitz, global markets strategist at J.P. Morgan Funds. ‘The good economic data does suggest that the Fed may hike rates sooner rather than later,' according to Lebovitz. TheStreet's Scott Gamm reports from New York.