The Fed may turn investors into stock haters just in time for the next upturn. Boomers may lead the revolt, says this strategist
A powerful, tech-led stock surge may be on the cards for Thursday, with Facebook parent Meta Platforms in the driver’s seat after less disastrous than feared results.
With earnings, inflation, a COVID-19 resurgence and war all in the balance, any equity gains could easily disappear in another sell-the-rip move. Wariness abounds as gross domestic product data loom, along with Amazon and Apple results due later.
“The Fed’s communicated policy trajectory was intended to weaken equities — equities and the dollar are the Fed’s main conduits to impact the economy and, in turn, inflation,” said the economist, in a recent note. “An acceleration of current market weakness adds to our expected near-term downswing in spending and, more critically, threatens to embed a much weaker outlook for spending heading into next year.”
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