Bloomberg: “Wall Street Already Positioning for a Post-Rate-Hike World”By datatrekresearch in IN THE NEWS
Excerpt from Bloomberg quoting DataTrek co-founder Nick Colas:
.... "Despite some investors’ wariness, Nicholas Colas, co-founder of DataTrek Research says that overall, the market isn’t worried anymore about what the Fed will do. S&P 500 sector correlations are running below five-year averages, indicating that traders are making stock-specific bets, he said.
The equity rally has spread out to economically sensitive names, Colas added. And stock volatility has dropped as well, with the Cboe VIX Index — also known as Wall Street’s fear gauge — running well below its long-term average of 20.
“Fed policy and the risks of an overshoot were the central drivers of US equity prices from January 2022 to May 2023,” Colas said in a mid-July note. “Now, markets believe we’re entering a ‘post-Fed’ world"....
Full article here on Bloomberg.