Ahead of the Federal Open Market Committee (FOMC) meeting on Wednesday, the market has gained some momentum. Investors are no longer anticipating a rate cut announcement at the March gathering, with the CME FedWatch tool indicating the low probability of cuts.
Scharf Investments Managing Director Eric Lynch joins Yahoo Finance to share his insight into what investors should focus on if the Fed does not cut rates.
Lynch suggests a focus on earnings growth: “If you look at what’s happening in the markets, at least the equity markets, you’ve seen a pretty strong rotation from the Mag 7, the technology US mega caps, into just all sorts of different areas: cyclicals, financials, internationals, small caps. And so what I think that is telling you, what investors are trying to tell us, are that, we need to probably pivot our attention from the macro to the micro, start looking at earnings going forward. ”
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Sigh… rates will get get cut once Trump wins. Then everyone will say it’s because of the Biden administration and the work they put in. Trump will get all the money back he said then a democrat will get in office to spend it all on 2028. Rinse and repeats
1st derivative would be TSMC
what do earnings have to do with stocks? makes no sense. That's like saying a casino is based on luck.
already priced in?
Inflation is not in check yet.
With every video, you’re getting perfect. I’m here for all your support.
Higher rates are coming. Just say it already, and skip the BS.
Interest rates ain't dropping, not when inflation's still on the rise. Every CPI report since July, the last time Powell raised rates, shows the current rates might have slowed the rate of inflation, but clearly it hasn't stopped one iota.
IMO Powell only takes a dovish tone when discussing the matter just to keep the market and banks from having a meltdown.
Why drop rates.. when banks are making money?
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