With the US seemingly winning the battle on inflation, the stock markets are on the rise, creating an opportunity for investors, especially tech, pharmaceuticals, biotech, medical devices and healthcare facilities, according to Nigel Green, CEO of deVere.
The drop in US inflation, creates hope that the Federal Reserve will manage to lower inflation without steering the economy into a recession. There was a significant concern that the central bank might overtighten in its attempt to cool inflation and cause a deep recession. “Cooling inflation and a strong and resilient labour market suggest no recession will come in 2023,” says Green. “We believe the Fed has pulled off the perfect soft landing.”
The data suggests that the battle on rising prices is being won, meaning the pressure is off the Fed for future rate hikes. This good news has caused stock markets to rise and offers favourable opportunities for investors to take advantage of.