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.
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.
Potentially, the political stance of “lower rates for…
