Good Morning,
I hope everyone had a great (long, for some) weekend! The next few days show highs in the 50’s. Spring cleanup is just around the corner!
Markets look to rebound this week coming off a strong January jobs report and an inflation report that came in a touch cooler than expected. Instead of this being a goldilocks pairing, investors are anticipating the Fed to remain on hold for longer as it relates to interest rate cuts. We continue to see a rotation out of big tech into more value areas of the market. A new acronym to describe what we have been seeing is HALO (recently coined by CNBC contributor, Josh Brown). It stands for “Heavy Assets Low Obsolescence”. Basically, companies that have high intrinsic value that will likely not be replaced by near-term AI advancements. I agree with this thesis and recommend continuing to allocate as such. Given the higher projected tax refunds this season, I think the retail investor is positioned well to spend and/or buy market dips. Earnings continue to show better than expected results which supports the strength of the overall economy. In the near term, I expect this market rotation to continue as AI fears playout. Please continue to reach out with questions/comments.
Attached, please find this week’s Market Strategy Radar Screen Report from John Stoltzfus, Chief Investment Strategist of Oppenheimer Asset Management.
Have a great rest of the week!