After December’s better-than-expected Consumer Price Index (CPI), Kenny Porcari, chief market strategist at SlateStone Wealth, said the recent Federal Reserve-led bull market would lead to a “market pullback.” I will,” he claimed.
Porcari told Yahoo Finance that the print shows that “fighting inflation is not necessarily going beyond what the market has prepared for us to do.” Investors are betting on an impending rate cut, and he warns that they need to reassess their narrative in light of data that suggests inflation will be even more robust in 2024.
Although the core strategy remains unchanged, Porcari said the surprise prompted more cautious positioning, advising people to “take a step back” and “be more cautious” after excitement overestimated the easing schedule.
What’s more, in an election year, the Fed is not willing to cut interest rates at the risk of being seen as “political,” Porcari said. In addition to better-than-expected inflation numbers and a strong economy, he believes there is “no real reason to cut rates.”
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Editor’s note: This article was written by angel smith.
