Pivot investments from 'macro to the micro': Strategist

03/18/2024 23:21

Ahead of the Federal Open Market Committee (FOMC) meeting on Wednesday, the market has gained some momentum. Investors are no longer anticipating a rate cut announcement at the March gathering, with the CME FedWatch tool indicating the low probability of cuts. Scharf Investments Managing Director Eric Lynch joins Yahoo Finance to share his insight into what investors should focus on if the Fed does not cut rates. Lynch suggests a focus on earnings growth: "If you look at what's happening in the markets, at least the equity markets, you've seen a pretty strong rotation from the Mag 7, the technology US mega caps, into just all sorts of different areas: cyclicals, financials, internationals, small caps. And so what I think that is telling you, what investors are trying to tell us, are that, we need to probably pivot our attention from the macro to the micro, start looking at earnings going forward. " 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 Nicholas Jacobino

Scharf Investments Managing Director Eric Lynch joins Yahoo Finance to share his insight into what investors should focus on if the Fed does not cut rates.

Lynch suggests a focus on earnings growth: "If you look at what's happening in the markets, at least the equity markets, you've seen a pretty strong rotation from the Mag 7, the technology US mega caps, into just all sorts of different areas: cyclicals, financials, internationals, small caps. And so what I think that is telling you, what investors are trying to tell us, are that, we need to probably pivot our attention from the macro to the micro, start looking at earnings going forward. "

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 Nicholas Jacobino