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Stocks rose again on Wednesday, with the S&P 500 and Nasdaq both hitting record highs.
Three investors shared the trends they see in the market and areas they think could climb higher.
Anastasia Amoroso, chief investment strategist at iCapital Network, says fear of the Federal Reserve has faded, paving the way to new heights.
“I think the Fed’s expectations to do anything in Jackson Hole have been drastically reduced, and that was a big concern. If the Fed were to talk about cutting… in the midst of the delta surge [Covid] case, it was not going to be good for the market. But now the basic scenario for everyone is that there is going to be a lot of talk among the central bankers in Jackson Hole, but there won’t be a slowdown and there won’t be a lot of action. So I think it’s positive for the market and that’s why you’ve seen reopening trading coming back into fashion the last few days. “
Paul Hickey, co-founder of Bespoke Investment Group, sees investors buying even small withdrawals.
“It’s August and we’re looking for something to focus on, and Jackson Hole fills that void, but it’s usually more of the bark than the bite. What you want to focus on here is that ‘there’s a lot of liquidity in the market; it’s not going anywhere in the near future here. We’re seeing this extreme tendency to buy dips on smallest dips and when you have a more accommodating Fed I think you go see more benefits towards cyclicals and reopening stocks. “
Stephanie Link, chief investment strategist at Hightower, looks back on the year so far and what is currently in favor.
“Remember how we talked about how 2021 was a year of rotation. From January to May it was value versus growth. From May to the end of July it was growth versus And now in the last couple of days we’ve seen a return to cyclical stocks and reopening names, a little more value versus growth and a sense of risk, which is why I think the actions even worked well, and I think it all has to do with the delta. “
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