Why is Growth Rallying?
Commodities rolling over -> Lower Inflation. Lower inflation -> Potentially less aggressive Fed. Less aggressive Fed -> Rally in growth stocks.
The real question is: Is this the start of a true trend reversal or another bear market rally before continuing down in the near future.
I am thinking this is a short term rally at the end of the quarter (which ends next week) before more downside in July/August.
What are your thoughts?
Here is a more blunt answer, once the FED has their head on straight we rally lol
It's hard to tell. I think growth will rally either way because their growing fundamentals will have to be reflected again at some point.
@dissectmarkets It all depends if Biden wants to stick his nose in that battle again or not. Personally, I think we should stay out and use the money that we are sending over to them to help supply chain issues stabilize. That would be more beneficial for the US.