Recent inflation data complicate the Fed’s path forward, with the timeline for rate cuts uncertain. Kestra Investment Management CIO Kara Murphy and Spear Invest Founder and CIO Ivana Delevska join Market Domination to help investors see the big picture during an uncertain economic climate.
Murphy pointed to market strength contrary to the Fed’s expectations, saying, “Economic growth has been strong, corporate earnings have been strong. What we’re finding is that the strength of stocks has really good fundamentals. It means that there is a strong foundation. So, that may certainly be the case.” It’s a little disappointing that we won’t get a rate cut from the Fed, but the fact is that the economy doesn’t need a rate cut. ”
Derevska argues that the market could reach new heights thanks to the shift to profitability. “We specifically cover the technology sector, so we didn’t like some of the more cyclical areas like semiconductors. We’re going to see explosive growth because revenues are really depressed.” Everywhere you look outside of AI, the pressure is on. On the soft side, these companies are really struggling to maintain high growth numbers, although they aren’t incredibly profitable. I think that will really change in the second half.” ”
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This post was written by Nicholas Jacobino
