ZGN - Consumer Sentiment Highest Since 2021 3 Stocks Leading the Way | Benzinga
The United States economy just entered into a new cycle. Because markets shift according to their six to nine-month expectations, three stocks in the consumer discretionary sector are leading the way in this new rotation. Now that the Federal Reserve (the Fed) has announced its intentions to cut interest rates in 2024, retail investors would benefit from hopping on the wave.
Traders are now pricing these potential interest rate cuts to kick in by May or June 2024. Investors can follow this sentiment by keeping track of the FedWatch tool CME Group Inc. offers (NASDAQ: CME). Lower interest rates and a brand-new high for consumer sentiment readings (not seen since 2021) could impact specific stocks.
Names like The Home Depot Inc. (NYSE: HD), Starbucks Co. (NASDAQ: SBUX), and even Nike Inc. (NYSE: NKE) are likely to call on a few investment dollars during the upcoming rotation. After all, the Consumer Discretionary Select Sector SPDR Fund (NYSEARCA:XLY) needs to catch up to the rest of the S&P 500, as it reads an underperformance of 7% over the past 6 months.
Home Depot's Management is On Point
Home Depot's management looked outside of its tried-and-tested business model to spur growth by spotting the newest trends in the real estate sector. Announcing a $18 billion acquisition of SRS Distribution, a roofing company, Home Depot is letting retail investors know where the money is.
Lower interest rates could make mortgage financing more accessible ...