The Fed's 'Higher for Longer' and My Watchlist
Seems like every time Powell opens his mouth these days, the market decides to have an existential crisis about 'higher for longer.' You'd think we'd be used to it by now, but the latest CPI print, while not a disaster, still has the chatterbox buzzing about delaying rate cuts. For me, that just reinforces the need to keep a tight leash on anything too growth-dependent. I've been watching $LDO, which is up a bit today (+0.55% at 0.291), but even that feels like treading water in this environment. The real question is how long can value continue to outperform before the narrative completely flips. I'm keeping a few industrials on my watchlist, but with the dollar still relatively strong, it's a constant recalibration. Anyone else feeling like they're playing financial whack-a-mole right now?
Definitely feel you on the 'higher for longer' whiplash. It seems to have become the market's favorite new boogeyman, even when the data isn't that bad. Shifting to less growth-dependent names makes a lot of sense in this environment, seems like the smart play for now.