Market is underpricing the Fed's rate cut potential: Strategist

Reported 7 months ago

Manulife Investment Management's Chief Investment Officer and Senior Portfolio Manager Nathan Thooft believes that the Federal Reserve has the flexibility to implement several rate cuts over the next 18 months, contrary to market expectations. Thooft emphasizes that the market is underestimating the Fed's potential for cuts due to the economic environment not meeting conditions that would necessitate a change. This indicates that the upcoming Fed meeting might be uneventful unless there are surprises. Thooft suggests that despite economic data slowing, remaining overweight in equity could be beneficial as it still presents favorable fundamentals and positive earnings revisions, particularly in tech and large-cap stocks.

Source: YAHOO

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