Is the Federal Reserve’s restrictive policies nearing an end that money managers are already trading as if rate hikes were a thing of the past?
JPMorgan is plowing into equities and at least one Invesco fund has done an about-face from its previous cautious positioning. DataTrek says investors are now betting on individual stocks instead of trading on macro themes.
Traders and economists are in near-unanimous agreement that the Fed will raise rates by a quarter percentage point Wednesday. Views diverge on how long the central bank will keep rates high and if another hike by the end of the year will be necessary. But one narrative is clear: The disinflationary process is underway, which means the jumbo rate hikes and volatility that came with them are firmly in the past.
Personally I would be cautious of the looming 2024 outlook where possible recession and higher inflation are creeping in. I'll also look out for the offshore and marine sector, as oil prices, which underpins this sector, is seen to remain relatively high this coming year.
Specifically, these 2 stocks within this sector:$Seatrium(S51.SI)$ and$YZJ Shipbldg SGD(BS6.SI)$ and $MarcoPolo Marine(5LY.SI)$
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Modify on 2023-12-18 12:59
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