⏳ June Rate Cuts or Higher for Longer? Where US Money Is Quietly Rotating
December core CPI cooled to 2.6% YoY, the lowest in four years. Yet markets barely reacted. That silence matters 👀
It signals this phase is no longer about inflation prints alone. It is about confidence, and whether growth and jobs soften enough to force the Fed's hand.
With June now priced as the earliest cut, the risk is that higher for longer stretches further than portfolios expect ⚠️. What would actually shift expectations? Likely a clearer rollover in wage growth, softer non-farm payrolls, or visible cracks in services and housing. Until then, expect choppy markets and selective leadership, not a broad rally.
In US financials, rate-sensitive banks like JPMorgan Chase, Bank of America, and Goldman Sachs may consolidate after strong runs rather than surge. Healthcare tends to hold up when growth expectations wobble 🩺, while tech continues to split between structural winners and everything else.
I still prefer assets with asymmetric optionality. Bitcoin exposure via MicroStrategy and Bitcoin benefits from institutional demand regardless of rate timing 🚀. Select growth plays like CRCL and Tesla can move on narrative momentum. More defensive tech such as Nokia adds ballast, while higher-beta names like Tilray and Beyond Meat remain tactical only.
This is not a market for rushing. Hedging here is not bearish 😌. It is how capital stays alive until the next real catalyst.
I am not a financial advisor. Trade wisely, Comrades!
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