Excerpt from CNBC quoting DataTrek co-founder Nick Colas:
…. “If inflation expectations start to pick up again, markets will rightly worry if the Federal Reserve will have to raise rates sooner,” DataTrek’s Nick Colas wrote. “If they continue to trend lower, then the market’s expectation of one rate increase in 2022 will be a safe assumption.”
Fed officials did pull forward earlier this month their expectations for the next rate hike to 2023, but it was a narrow miss for 2022, and market participants think an increase could come earlier than the central bank forecasters anticipate.
Colas sees a solid path ahead for stocks, based on a low-inflation environment combined with an accommodative Fed and a solid earnings picture.
Analysts collectively see a 12.2% gain for the S&P 500 over the next 12 months. Colas said he remains most bullish on energy and financials”…
Read the full article here on CNBC!