ETFs to Boost Gains Amid Rising Rate Cut Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Source: NASDAQ.COM
- Market Expectations of Fed Rate Cuts: Recent ADP and jobless claims support the idea of a "soft economy," increasing expectations of Fed interest rate cuts in September, with a 68.1% likelihood.
- Investor Sentiment on Rate Cuts: Investors also anticipate a December rate cut, with a 46.3% probability of interest rates dropping to 4.75-5%.
- Economic Indicators: June saw stable unemployment at 4%, suggesting healthy job growth and controlled inflation levels, potentially allowing the Fed to manage inflation without risking a recession.
- Interest Rate Cut Impact: The slowing wage growth trend may lead policymakers to consider an interest rate cut this year to combat disinflationary pressures.
- Investment Opportunities: With the potential for a weaker dollar due to rate cuts, investing in currency-related funds, emerging markets ETFs, gold ETFs, and housing market ETFs could be beneficial.
Analyst Views on EEM
Wall Street analysts forecast EEM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for EEM is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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Current: 58.700
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
