“I think there’s a lot of that manufacturing tilt coming back to the U.S.” – 03:05
Luke Lloyd, CEO & Founder of Lloyd Financial Group, joins Remy Blaire at the New York Stock Exchange to discuss the highly anticipated Fed Day. Investors are eagerly awaiting a potential interest rate cut by the Federal Reserve, with expectations leaning towards a reduction of a quarter basis point. The conversation centers around the implications of this decision and the tone of Chair Powell’s upcoming press conference.
Remy and Luke begin by emphasizing the importance of three key economic factors: inflation, interest rates, and growth. Luke confidently asserts that a 25 basis point cut is imminent, noting that while inflation has decreased to 2.9%, it still hovers above the Fed’s target. He highlights the current economic backdrop, mentioning that liquidity is at all-time highs and government deficits are substantial, which complicates the investment landscape.
As the discussion progresses, Luke shares insights into his firm’s recent portfolio adjustments. After a period of focusing on value stocks, they have begun to incorporate more growth-oriented assets, particularly in the technology sector. He mentions specific stocks, including some recent IPOs, that they are considering for their growth potential, indicating a shift in strategy to adapt to the current market environment.
The conversation then shifts to international markets, where Luke discusses currency risks and policy moves overseas. He notes that while international stocks have performed well this year, his firm has recently sold off those positions in favor of opportunities in North and South America. Luke highlights specific companies, such as DOW and various Mexican stocks, that are well-positioned to benefit from a manufacturing shift back to the U.S.