Today on the show, we welcome back Director of quantitative market strategy Denise Chisholm. She discusses the Fed’s next possible move, her current market thesis, and what sectors are on her radar. Denise talks about durable recovery in terms of sectors. She says labor costs, good prices, and PPI came down faster than CPI. Technology was the first to be in the earnings recession, however it is now the first out. She sees a great setup for post-recessionary recovery and adds we are not in a situation where investors should be thinking about underweighting technology stocks. Denise touches on the Fed’s decisions on interest rate cuts saying they are not too concerned with the equity market. She adds there is very little correlation between acceleration of growth to the acceleration of inflation. The sweet spot would be an inflation rate above 2%. The sweet spot for equities is between 3 to 4% with Real GDP growth higher. She also highlights top sectors as consumer discretionary, and technology and bottom sectors as energy, consumer staples and utilities.

Recorded on February 29, 2024.

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