Despite recent concerns, Wall Street veterans are confident that the bull market will persist, citing a robust U.S. economy and the potential of artificial intelligence (AI) as key drivers.
What Happened: The U.S. stock market has experienced a recent downturn due to escalating tensions in the Middle East and apprehensions about monetary policy, as per a report by Business Insider.
The dip was triggered by higher-than-expected inflation in March, which led to a reevaluation of rate cut expectations for 2024. The situation was further exacerbated by Iran’s attack on Israel over the weekend, prompting investors to seek refuge in safe havens like U.S. Treasuries.
However, seasoned investors believe that these concerns are temporary and that the bull market is far from over. They have offered several reasons to support this view.
Tom Lee, from Fundstrat, suggested that the March inflation report wasn’t as alarming as it seemed, and a June rate cut is still plausible.
“Believe it or not, this was actually a very good CPI report,” Lee said. “It just tells you that this is a timing issue, it’s not structural. In other words, nothing else is causing hotter CPI.”
James Demmert, Main Street Research CIO, sees the current correction as a “buy-the-dip” moment, driven by Middle East tensions, rising bond yields, and concerns about delayed Fed rate cuts.
“We are buyers of this stock market correction because while the headlines are scary right now, we believe we have …
Full story available on Benzinga.com
Despite recent concerns, Wall Street veterans are confident that the bull market will persist, citing a robust U.S. economy and the potential of artificial intelligence (AI) as key drivers.
What Happened: The U.S. stock market has experienced a recent downturn due to escalating tensions in the Middle East and apprehensions about monetary policy, as per a report by Business Insider.
The dip was triggered by higher-than-expected inflation in March, which led to a reevaluation of rate cut expectations for 2024. The situation was further exacerbated by Iran’s attack on Israel over the weekend, prompting investors to seek refuge in safe havens like U.S. Treasuries.
However, seasoned investors believe that these concerns are temporary and that the bull market is far from over. They have offered several reasons to support this view.
Tom Lee, from Fundstrat, suggested that the March inflation report wasn’t as alarming as it seemed, and a June rate cut is still plausible.
“Believe it or not, this was actually a very good CPI report,” Lee said. “It just tells you that this is a timing issue, it’s not structural. In other words, nothing else is causing hotter CPI.”
James Demmert, Main Street Research CIO, sees the current correction as a “buy-the-dip” moment, driven by Middle East tensions, rising bond yields, and concerns about delayed Fed rate cuts.
“We are buyers of this stock market correction because while the headlines are scary right now, we believe we have …
Full story available on Benzinga.com
Despite recent concerns, Wall Street veterans are confident that the bull market will persist, citing a robust U.S. economy and the potential of artificial intelligence (AI) as key drivers.
What Happened: The U.S. stock market has experienced a recent downturn due to escalating tensions in the Middle East and apprehensions about monetary policy, as per a report by Business Insider.
The dip was triggered by higher-than-expected inflation in March, which led to a reevaluation of rate cut expectations for 2024. The situation was further exacerbated by Iran’s attack on Israel over the weekend, prompting investors to seek refuge in safe havens like U.S. Treasuries.
However, seasoned investors believe that these concerns are temporary and that the bull market is far from over. They have offered several reasons to support this view.
Tom Lee, from Fundstrat, suggested that the March inflation report wasn’t as alarming as it seemed, and a June rate cut is still plausible.
“Believe it or not, this was actually a very good CPI report,” Lee said. “It just tells you that this is a timing issue, it’s not structural. In other words, nothing else is causing hotter CPI.”
James Demmert, Main Street Research CIO, sees the current correction as a “buy-the-dip” moment, driven by Middle East tensions, rising bond yields, and concerns about delayed Fed rate cuts.
“We are buyers of this stock market correction because while the headlines are scary right now, we believe we have …Full story available on Benzinga.com Read MoreAnalyst Color, artificial intelligence, Benjamin Netanyahu, Dan Ives, Fundstrat, Goldman Sachs, Inflation, James Demmert, John Flood, Kaustubh Bagalkote, Main Street Research, Middle East, News, Rate Cut, Tom Lee, Wedbush Securities, Economics, Markets, News, Analyst Color, Economics, Markets, Benzinga Markets
