IWF - IWF: Rate Pivot Less Likely Than A Staying Of Rates
2023-05-14 21:57:46 ET
Summary
- Our view on things is that a rate-stay is more likely than an actual pivot, even if banking issues continue.
- Persistent consumer buying signals expectations that there will be inflation, and the Fed will want to stomp that out even though inflation is easing slightly.
- The IWF has a lot to gain on a rate pivot because of technical effects around tech stocks, but we don't think it's coming.
- IWF mainly has the AI factor to gain from for now with at least 20% allocated to stocks with an AI proposition, but that's possibly already priced in.
- Nothing clearly compelling about IWF.
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IWF: Rate Pivot Less Likely Than A Staying Of Rates