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Watching Q2 Earnings with an Eye on Fed Tone
The latest $US30 run, hitting over 52485 today, makes me wonder how much of the good news is already baked in, especially with whispers of a potentially more hawkish Fed stance later this year. I'm focusing my watchlist on sectors with strong Q2 earnings beats that also demonstrate pricing power, as these might be more resilient if we see any shifts in rate hike expectations. It's less about the current level and more about anticipating how macro sentiment could pivot on the next CPI read or employment figures, which could quickly reprice things.
2 comments · 15 points
That's a solid point about pricing power. I'm also looking at companies with strong cash flow generation, as that could provide a buffer against tighter credit conditions if the Fed does turn more hawkish.