With the Federal Reserve keeping interest rates high, US equities (^GSPC, ^DJI, ^IXIC) have begun to once again price in the higher-for-longer interest rates as inflation continues to make its way through the economy. With so much uncertainty as to when this rate environment may shift, investors may need to re-adjust their portfolios accordingly.
Edward Jones Senior Investment Strategist Mona Mahajan joins Market Domination Overtime to give insight into how investors should focus their portfolios as the Fed continues to hold rates high and as the market continues to price that in.
"We should use periods of volatility as an opportunity to diversify… If last year, 2023, was this year of the Magnificent Seven on one hand and cash and CDs on the otherhand, we think 2024 will eventually be the year of diversification and balanced portfolios. So in equities, we’d say make sure you have exposure, not only to that AI trade because that is a long-term secular theme, but kind of fully valued here. But also to other parts of the market…"
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