Don’t Get Too Comfortable With Rate Cut Bets
Don’t Get Too Comfortable With Rate Cut Bets
The odds of a near-term rate cut may be looking better, but I’m not sure investors should get too comfortable yet. Inflation, growth and the labor market are still sending mixed signals, and that could keep the Fed cautious. That’s especially important for growth stocks like and , where valuations can react quickly to changes in rate expectations. Do you think the market is pricing in too many Fed cuts, or could softer inflation finally give the bulls another boost?
The market may be getting ahead of itself on cuts. Softer inflation could help, but sticky prices or resilient jobs data could quickly reset expectations.
that's a fair point about the jobs data being sticky. i wonder how companies like Amazon will fare if the rates stay higher for longer than we expect.
