Deepak Puri, Chief Investment Officer for the Americas, outlines what recent economic data could mean for Fed policy, and offers a view on U.S. equities as well as geopolitical considerations for investors.
An update on GDP and the Fed's preferred inflation gauge will be in the spotlight this week. But recent economic reports suggest we're getting closer to the comfort zone for the Fed to move rates. Deepak says, "The US economy is not breaking, but is bending to a somewhat slower trajectory."
Asked whether political events are reflected in market developments, Deepak says "a hundred days before the general elections, volatility tends to pick up", adding that "we're entering a somewhat challenging time."
Finally, commenting on U.S. equities, Deepak says "just like in the previous few quarters, the big focus is on big tech, because the Mag 7 are expected to grow earnings at 30% year-over-year compared to the overall index of around 9%."
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