Powell’s dovish comments on inflation are arguably the biggest reason for the uptick in positive sentiment, especially since headlines about Covid-19 and Afghanistan are still not good.
“I call this the Teflon market. Investors can shake off all these less-than-favorable developments,” said Jimmy Chang, chief investment officer of the Rockefeller Global Family Office. “The Fed’s tapering choreography is about appeasing the market.”
It’s been a great month for stocks. The Dow is up more than 1% while the Nasdaq has surged about 4%. The S&P 500 gained nearly 3% in August and the blue chip index is now on a seven-month winning streak.
“I expect that growth stocks will remain our oasis in the political chaos rippling around the world,” Louis Navellier, chief investment officer of Navellier & Associates, said in a report Tuesday.
“Money has to go somewhere and due to the ultra-low interest rate environment, millions of new investors are turning to the stock market, seeking higher yields,” he added.
Read More:The mood on Wall Street just got better really quickly
2021-08-31 16:23:00