The Federal Reserve might have completed its round of rate hikes, based on recent statements made by the agency’s officials. Those statements conveyed the message that there is presently no urgent necessity to push the Fed funds rate beyond its existing range of 5.25 to 5.50% – the highest level since July 2001. A number of Fed officials pointed to the surge in government bond yields as a sign that the economy is slowing down sufficiently to curb inflation without necessitating further intervent
The S&P 500 is up by 14% year-to-date but it has not gone unnoticed that the robust performance has been driven by strong displays from the tech mega-caps. According to Goldman Sachs strategist Lily Calcagnini, there are better investment opportunities right now further down the food chain. “Small stocks trade at a valuation discount relative to large caps, suggesting now is an attractive entry point for investors with multi-year investing time horizons,” Calcagnini explained. “Even within the l