‘Pivot Party’ in Markets Looks Vulnerable With US Disinflation Stalling
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 14 2024
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Source: Bloomberg
- Economic Cycle Confusion: Federal Reserve Chair Jerome Powell aims to cut interest rates amidst companies continuing to make profits despite high borrowing costs.
- Investor Caution: Recent weeks have seen investors like Gabelli Funds and John Hancock Investment becoming more cautious due to stretched market conditions.
- Market Sentiment: The recent upswing in risk sentiment is attributed to a "Powell Pivot 2.0," with the Fed looking to cut rates before growth slows significantly.
- Challenges Ahead: Balancing economic slowdown to control inflation without stalling growth is crucial, especially with the upcoming US consumer price index print.
- Commodities Outlook: Carlyle Group's enthusiasm for commodities like copper remains strong, driven by factors such as green energy, AI, and military applications.
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.
