Connect with us

Hi, what are you looking for?


Fed minutes indicate smaller rate hikes ahead: time to buy?

S&P 500 ended in the green again after minutes from the Fed’s most recent meeting confirmed that officials agreed on switching soon to smaller rate hikes.

Should you turn bullish on equities now?

Reacting to the summary on CNBC’s “Power Lunch”, Jerry Castellini – the Chief Investment Officer of Castleark Management said it served to further exhaust the bear case for the equities market.

You’ve got very attractive bond yields. People are going to start buying bonds and that’s going to spin over to the valuation of equities, which we think could be really cheap based on individual companies.

For the year, the benchmark index, despite a significant recovery in recent weeks, is still down more than 15%. Expectations are now for a 50-bps increase in December following the recent CPI print that told a tale of peak inflation (detailed here).

Put together, not may be a great time to hunt for quality names on a bargain.

Castellini reveals a few stocks he likes

In terms of what to own, Castellini recommends companies with a reliable free cash flow and ability to meet or beat earnings estimates. A name that matches that criteria is Exxon Mobil Corp (NYSE: XOM).

He finds it a safe investment even if oil prices slip to sub $70 level. Other than that, Castellini is bullish on a bunch of retail names as well.

Ulta Beauty, Macy’s, Dick’s, Best Buy, Home Depot have told things a cautious management wouldn’t at the verge of hard recession. They said consumer is better than you think. These names will see earnings surprise over the next nine months.

Even if the U.S. economy ends up in a recession, it will likely not be a deep one, Castellini concluded.

The post Fed minutes indicate smaller rate hikes ahead: time to buy? appeared first on Invezz.

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like


    Reprinted from the Future of Freedom Foundation President Biden’s campaign to banish (or maybe outlaw) political paranoia took a wallop last spring. In April,...


    Inflation appears to be on the decline. The Personal Consumption Expenditures Price Index (PCEPI), which is the Federal Reserve’s preferred measure of inflation, grew...

    Editor's Pick

    It’s already a cliché, but technology is rapidly improving. And for many businesses, it’s hard to catch up. However, it’s not just the average...

    Editor's Pick

    At Broadband World Forum 2022, Fibocom launched 5G module FG370 based on MediaTek T830 platform, aiming to empower the deployment of 5G FWA for...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2022 All Rights Reserved.