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Stock market rally likely to continue regardless of Fed minutes tone, says deVere CEO
Invest
Stock market rally likely to continue regardless of Fed minutes tone, says deVere CEO
The bull run that has propelled Wall Street's major indexes to record highs this month is expected to continue regardless of the tone of the upcoming Federal Reserve minutes, according to Nigel Green, CEO of one of the world's largest independent financial advisory and asset management firms.
Stock market rally likely to continue regardless of Fed minutes tone, says deVere CEO
The bull run that has propelled Wall Street's major indexes to record highs this month is expected to continue regardless of the tone of the upcoming Federal Reserve minutes, according to Nigel Green, CEO of one of the world's largest independent financial advisory and asset management firms.
Investors are eagerly awaiting the release of minutes from the US central bank's latest policy meeting for clues on the timing of potential interest rate cuts. Despite several officials recently emphasizing the need for further evidence of easing inflation before lowering rates, Mr Green believes the market's upward trajectory will persist.
"More hawkish? More dovish? The tone of the Fed minutes is becoming less important to many investors now," he said.
"We expect the markets' bull run which has taken Wall Street's major indexes to fresh highs in recent weeks to continue."
Mr Green cited two main narratives supporting this outlook. First, a strong corporate earnings season and the prospect of a "soft landing" for the US economy have instilled confidence in investors regarding the stability and resilience of the world's largest economy.
Additionally, signs of a rebound in China and improving economic conditions in Europe are further bolstering the global economic outlook.
The second narrative underpinning expectations of a continued stock market rally revolves around the anticipation of interest rate cuts in the event of an economic slowdown.
"Should this happen, the Fed would cut rates in response, and in turn, this would also be expected to bolster equities," Mr Green said.
While the markets' hopes for rate cuts dominate headlines and investor sentiment, Mr Green cautioned that such expectations should not overshadow the importance of focusing on companies' fundamental metrics.
"Focusing on companies' fundamentals remains paramount. The fundamentals - earnings growth, revenue trends, profit margins, debt levels, and cash flow - offer a clear picture of a firm's health and long-term viability," he said.
"These metrics are critical for assessing the intrinsic value, irrespective of macroeconomic policy shifts."
Mr Green noted that a disciplined approach grounded in solid financial data helps investors build resilient portfolios that can withstand short-term market fluctuations and align with long-term investment goals.
"The Fed minutes will make little material difference to current market sentiment as the optimism continues," he concluded.
The bullish prediction comes as investors await key insights from the Federal Reserve's latest policy meeting minutes, with the market's focus firmly on the potential timing and magnitude of future interest rate adjustments.
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