Fed officials continue to extinguish the inflationary panic and help markets return to last year’s major trends. In particular, yesterday, we saw an acceleration in high-tech stocks and a simultaneous weakening of the dollar. Commodities and metals lagged in their momentum, but in our view, remain potentially attractive for the longer term.
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Investors are selling off dollars and entering growth stocks, convinced that the recent spike in inflation will not lead to a tightening of monetary policy.
The index is up 1.8% for the day versus 1% for the and 0.5% for the . Meanwhile, the year-to-date dynamics of the indices are reversed, with NASDAQ 100, the laggard in this trio, adding only 7.5%, while gained 13.4%, and Dow Jones is up 13.8%. The high-tech giants have more upside potential and may benefit from a short-term portfolio rebalancing.
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Potentially, the political stance of “lower rates for…
