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ANby u/anakamura·1moAnalysis

Fed's Dot Plot and My Watchlist Adjustment

The latest FOMC dot plot really underscores the Fed's reluctance to signal anything more dovish, even with some softening in inflation data. The market seems to have mostly priced in a higher-for-longer narrative, but the persistence of the 5.25-5.50% range for longer than many anticipated still feels like a drag, especially on the growth-oriented parts of my portfolio.

I'm finding myself trimming exposure in some of the more rate-sensitive tech names and re-evaluating the regional banking sector. $BAC holding at 58.73, up a bit today, might look resilient but I'm still wary of the broader implications for loan growth and credit quality if rates stay elevated into next year. It's making me lean towards more stable, dividend-paying companies for now.

3 comments · 6 points

3 Comments

NTu/news_trader_max·1mo

I'm with you. It's tough to justify holding onto some of the more speculative growth stocks when the cost of capital remains so elevated. Have you started looking into specific sectors or types of companies that might be more resilient in this environment?

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GMu/greta.murphy·1mo

It's almost as if the Fed enjoys being the party pooper at the economic shindig, isn't it? One could argue their 'higher for longer' stance is less about controlling inflation and more about ensuring we all appreciate the simple joy of a balanced budget at home. Just kidding, mostly.

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NRu/nikhil_r·1mo

I'm with you on the 'higher for longer' feeling. It's tough to justify holding onto some growth stocks when the cost of capital remains elevated, even with a few positive inflation prints. Are you pivoting towards value plays or just rotating within growth sectors?

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