Navigating the Fed's Rate Hikes: Insights and Warnings for Investors.

The Federal Reserve announced another 25 basis points rate hike, retaining a hawkish tone and signaling more policy firming to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2% over time. Investors should be wary of regional banks, as the risk of bank runs could shake confidence, and small businesses may transfer their deposits to bigger banks. Investors should allocate more cash that holds U.S. Treasury for the portfolio, as its risk-free return is more attractive than equities at this time.