With Federal Reserve rate cuts anticipated by May, Brett Ewing, First Franklin's Chief Market Strategist, joins Yahoo Finance Live to discuss the sectors he believes present the best opportunities in the current market landscape. While acknowledging that the data currently appears "pretty strong," Ewing highlights the uncertainties surrounding factors such as shelter inflation, labor market dynamics, and JOLTS numbers. He emphasizes the need for close monitoring of these pressures to provide the Federal Reserve with a "green light to move forward" with rate cuts. Ewing also notes that the market is "not currently positioned for" small-cap stocks. Historically, however, when the first rate cut occurs, small-caps have typically been "one of the best-performing asset classes." For investors seeking exposure, Ewing recommends considering ETFs and index mutual funds, stating that the present moment offers "one of the greatest opportunities to get in." He believes that when rate cuts eventually materialize, "small-cap and mid-cap areas will run the strongest," while advising against investing in home-building stocks. For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Angel Smith

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