James Demmert, chief investment officer at Main Street Research, says "Thursday's CPI report should show a continued moderation in inflation—validating the Fed's recent interest rate cuts."
"In our opinion, the market's expectations for future rate cuts are too optimistic given the strength of the economy, and this mismatch in expectations may cause volatility, which we believe should be used as a buying opportunity."
“Our message to investors is that we are in the early stages of a business cycle and bull market with the benefits of the AI tailwinds, which [may] result in above-average equity returns going forward. Markets going forward will be driven by economic growth and corporate profits and less by Fed policy,” he added.
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