On this week’s episode of Tape Talk, Quint and Daniel discuss strategies to navigate the diverse newsflow here. From the Fed’s upcoming rate hike, corporate earnings, and negative headlines, investors have a lot to digest while stocks push to new highs.
Rate Cut Imminent
The market is pricing in a definite rate cut at the FOMC’s next meeting at the end of the month. While it’s hard to see strong evidence to support this cut, beyond a simple precautionary step, it does appear the Fed has broadcasted this move heavily and the market is listening.
Corporate earnings for this most recent reporting season have seemed to broadly beat investors’ expectations. It appears many companies have been able to navigate the trade hurdles well. However, many seem to point to potential or actual price hikes in the future.
If you didn’t know where the stock market was trading recently, many recent headlines might lead you to believe we are in the midst of a significant correction. This is a good example of how news can move from informative to static which investors need to be cautious about digesting.