The Fed's dovish pivot and my watchlist adjustment
Seems like the market is finally getting comfortable with the idea of rate cuts, fueled by the latest CPI numbers. The softening inflation data, even if still elevated, has definitely shifted the Fed's tone. This makes me lean more into growth plays I've been eyeing, especially in sectors that thrive on lower borrowing costs.
My focus is on identifying undervalued names that have been oversold due to higher rates. Also watching how this impacts commodities, specifically oil, given the dollar's recent movements. I'm keeping a close eye on companies like $ATOM, currently at 1.37, looking for signs of sustained upward momentum or potential entry points as macro sentiment improves. The range of 1.368-1.37948 today is tight, but the overall shift could bring volatility.
Interesting take, but isn't there still a significant risk of inflation proving stickier than anticipated? A premature pivot could easily lead to a re-acceleration.