McMillan on U.S. stocks: ‘markets may have some cushion this month’ | Invezz
There’s reason to believe that the S&P 500 can push up further this month, says Brad McMillan. He’s the Chief Investment Officer for Commonwealth Financial Network.
McMillan remains constructive primarily because the ever-so talked about earnings recession has not materialised so far.
On top of that, he doesn’t expect the Federal Reserve to tighten any further now that signs of a slowdown are popping up in different constituents of the economy.
In the short term, economy is expected to grow more slowly. But so far earnings growth is holding up, which is good news. Between that and prospect of lower rates, markets may have some cushion this month.
Last week, the U.S. central bank signalled a “pause” after delivering its 10th consecutive increase in interest rates as Invezz reported HERE.
McMillan also drives optimism from inflation that he’s convinced will ease further as the economy loses pace. In March, the core personal consumption expenditures price index was up in line with expectations (read more).
The CIO expects the risks around the federal debt ceiling to be resolved as well albeit at the last minute. In a blog post today, McMillan said:
While we face risks, with the debt ceiling at the top of the list, the solid results from April mean the prospects for the rest of the year continue to look good.
At writing, the equities market is up roughly 8.0% versus the start of the year.
Copy expert traders easily with eToro. Invest in stocks like Tesla & Apple. Instantly trade ETFs like FTSE 100 & S&P 500. Sign-up in minutes.
81% of retail CFD accounts lose money
Get demo account