Consumers are feeling better about the economy this month because of easing inflation and a still-strong labor market, as evident from the preliminary consumer sentiment index surging to 66.4 from 64.9 in January, marking the best reading since January 2021.
However, according to Niall O’Sullivan, Neuberger Berman’s chief investment officer of multi-asset strategies for Europe, the Middle East, and Africa, “inflation is going to be harder to tame.” He added, “Central banks will have to be at it much longer than many people think.”
Moreover, he also believes that it could be years rather than months before inflation is properly curbed, and the Fed is unlikely to cut rates this year.
While according to Dow Jones, economists are expecting a 0.4% increase in CPI in January, translating into 6.2% annual growth, there are some indications that the figure could be higher.
Given the lingering macroeconomic uncertainties, investing in large-cap stocks could be safe because these companies are more established and usually survive market disruptions better. Hence, fundamentally sound large-cap stocks, Visa Inc. (V), Eli Lilly and Company (LLY), and…
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